Justifying a Big Purchase

[ValKehl]

I echo all of the great advice already posted. I would add that if you are married, I believe it would be wise to obtain your wife's blessing.

I know that I am overly cautious and conservative when it comes to spending what to me are larger sums of money, perhaps because my parents never had much and we lived very frugally (my dad was wiped out during the 1930's depression, and I don't think he ever recovered mentally). Hence, much to my regret, I have passed on several WaJo cards over the last 25 years that I wish I had in my WaJo collection today.

[bnorth]

This is what I do. If I have to try and justify a purchase it is time to turn around and run away.

[Andrew1975]

Some great responses above... I will only add that in my experience collecting prewar cards over the last two decades or so, my main regrets are passing on some cards that I now wish I had purchased. Particularly, a few that are very difficult to find.

[Smarti5051]

I prefer to think about it in investment terms. There is no question a sportscard is an "alternative investment." For investing, even if you are doing so responsibly with a mix of bonds, stocks and real estate, it is not considered unwise to have a small percentage of your portfolio in alternative investments like art, collectables, cryptocurrency, etc. for diversification. Of course, if 90% of your life savings and retirement is in shiny cards of current minor league ballplayers (or even rare vintage cards), you might want to rethink your portfolio holdings.

Will all of these investments go up in value? Of course not. But, historically, several have increased in value over time. On the flip side, a 40% loss on a Mickey Mantle rookie stings, but is not substantially MORE likely than a 40% drop in the stock market. And, in both cases, the market has recovered as time passes.

To me, vintage sportscards are like pieces of art. Plenty of financially savvy investors have a portion of their portfolio in fine art. The advise of art investors is to do your research, find something that speaks to you, and buy at a fair price. Let the market do what it is going to do while you enjoy your art.

The wife caveat is a big one. I look to mine to slow my impulse buys (but she always encourages the purchase). But, if your wife is concerned about your finances and would be more nervous or upset if you had more money tied up in your art, then there is no way you are going to enjoy it as much as you are going to not enjoy an upset and/or worried wife.

[Touch'EmAll]

A good opportunity to sell something else to help pay for a dream card. Whittling down or consolidating your collection is a-ok. Easier to justify if you help by selling a lesser card.

[parkplace33]

Only you can make the decision. But if you are having doubts, maybe right down the pros and cons and go from there.

[Jstottlemire1]

Originally Posted by Andrew1975

Some great responses above... I will only add that in my experience collecting prewar cards over the last two decades or so, my main regrets are passing on some cards that I now wish I had purchased. Particularly, a few that are very difficult to find.

I am in the same lines of thinking as Andrew here. I’d go for it if pre war iconic player and a scarce card you won’t regret it.

[mrreality68]

I vote for go for it
Since you have the cash and do not have to charge/borrow very good sign.
If it gives you enjoyment go for it
If it is a solid card it is probably liquid and relatively to sell if needed.
If you are looking as an investment it is just a form of diversification and it is good to diversify

[G1911]

Asking a bunch of junkies and investors will always result in a ‘do it’ consensus

I would look at what percent of your cash on hand this represents, and the ease of selling it. Being able to pay for it in cash doesn’t mean tossing most of your savings account at a baseball card is wise, though it’s better than 401K draining. A rare card often has few buyers looking for it. If your gut says it is fiscally irresponsible, even though you want it and your bias is of course to do it, that’s the clue not to do it.

[rjackson44]

Originally Posted by G1911

Asking a bunch of junkies and investors will always result in a ‘do it’ consensus

I would look at what percent of your cash on hand this represents, and the ease of selling it. Being able to pay for it in cash doesn’t mean tossing most of your savings account at a baseball card is wise, though it’s better than 401K draining. A rare card often has few buyers looking for it. If your gut says it is fiscally irresponsible, even though you want it and your bias is of course to do it, that’s the clue not to do it.

greg lol

[boneheadandrube]

A couple posters have mentioned avoiding "escoteric" cards. I'd love for that to be more clearly defined, what cards are considered escoteric by the posters who only think about "Ruth,Cobb,Wagner..."?

[LincolnVT]

If it is a Cobb, Jackson, Mantle, Ruth or Robinson in a PSA or SGC holder and the price is right…should be a no brained IMO.

[BillyCoxDodgers3B]

A big part of being a collector is which mentality you choose to follow. For me, and it was something I had to learn (so it can be done!), it has greatly helped to realize that you can part with items and it's OK. It becomes easier the more you do it. You'll find another copy of X card if it's meant to be, or something even more appealing to the future version of yourself will inevitably appear. Appreciate what you have, but don't squeeze the cards too closely to your heart. They are pieces of cardboard that bring enjoyment, but let them visit you for a while on their journeys then allow them to move on if that's how it's to be.

If the card and price points check out and it's something that you can afford without strain, just buy it. If you do find yourself pressed to sell down the road and end up making a tidy profit, you just might find your whole mentality changed on your behalf due to that nice flip you made!

[Luke]

One thing to think of is what is your history with making decisions. If you struggle with making choices and often find yourself thinking too long and missing out on an opportunity, then this would be my suggestion:

When I buy a big card, there is always a component to it of "Do I think I could sell this for about what I am paying if something happened and I needed the money?" I think that's a good question to ask yourself. If the answer is yes, and you really want the card, I don't see any reason not to buy it.

If however, you tend to make quick decisions (and be happy with them afterwards) then maybe you should listen to your gut and be cautious. Maybe the price is too high and know it would be tough to sell it if you had to. Or maybe the seller wasn't pleasant and somewhere inside you know that would impact your enjoyment of the card, etc.

[Section103]

My answer depends on whether or not this is a card Im looking to add to my collection (dont do it!) or not (hey man, go for it).

Edited to add: I havent done this in awhile, but in the past when I struggled with choices I'd flip a coin and see the results. My gut instinct would almost always spring forward and indicate whether I really should or really shouldnt.

[rjackson44]

Originally Posted by bnorth

This is what I do. If I have to try and justify a purchase it is time to turn around and run away.

ben lol

[notfast]

My thought process is if you can afford it but you are still hesitant, don’t pull the trigger.

Maybe that’s overly simple but it works for me.

[raulus]

Originally Posted by ValKehl

I echo all of the great advice already posted. I would add that if you are married, I believe it would be wise to obtain your wife's blessing.
.

Wise words here.

Due to just such a previous purchase, I now have some limits in place.

Under $1k, no limits.
$1k to $10k - wifely notification required, but after purchase is fine
Over $10k - wifely approval required prior to purchase

And in my case, she views any single purchase or payment in the aggregate. So just because I buy 30 pieces at auction doesn’t mean that I get to skirt the rules by dividing the total purchase by 30!

Edited to add: I did negotiate one exception. If I sell a piece first, then I can reinvest the proceeds with reckless disregard to any approval or notification requirements.