Another card investment thread

[Republicaninmass]

Intrinsic - belonging naturally; essential. ie face value, even melt value


Stocks - you don't even own a piece of paper anymore. What does future cash flow, or this "value" growth rate you speak of, allow you to spend? it's only worth what someone will pay at a given time based on what they think it will be worth.

edited: and each there is someone selling a stock convinced it will go down, to someone convinced it will go up. This happens with cards sometimes

[Econteachert205]

I do believe that there will continue to be price appreciation in the best such as Jordan or Mantle rookies. Beyond that, though, long term I believe many bad investments abound. How many millennial or gen z kids exist that will shell out hundreds or thousands for high grade commons? What about middling hof rookie cards, tough or not. There may always be a hard core few who need a Kiki cuyler auto rookie but if I were holding these types of “investments” I would not feel any more secure than the speculative equivalent in any other market.

The card I bought as an investment that I worry about the least is my 86 fleer Jordan. Remember the best investments are those which appreciate quickest after purchasing. For me it is that card.

[joshuanip]

Originally Posted by Republicaninmass

Intrinsic - belonging naturally; essential. ie face value, even melt value


Stocks - you don't even own a piece of paper anymore. What does future cash flow, or this "value" growth rate you speak of, allow you to spend? it's only worth what someone will pay at a given time based on what they think it will be worth.

edited: and each there is someone selling a stock convinced it will go down, to someone convinced it will go up. This happens with cards sometimes

Don’t mean to hijack the thread to stocks but growth (no dividends) is particularly (over) valued in low rate environments because it’s the compound affect of discounting that future growth is muted.

Hence value without any dividends (spending $). Add demand from stock buybacks and lack of options being us (market) is the best house in a bad neighborhood and the reduction Of publicly availble stocks from pe buyouts, and you have a meltup

[frankbmd]

Originally Posted by joshuanip

I respectfully disagree on these points. Everything is “perceived”.

Coins intrinsic value is limited to face value which is nominal. Anything above is collectible value, same as baseball cards but without the attachment to history.

Stocks without dividends are valued based on its growth rate of future free cash flows (augmented by one time tax cuts, unsustainable accommodative central banks, and admittedly a strong economy) discounted by a historically low Goldilocks discount rate, and impacted by smoke and mirrors stock buybacks and positive headline risk fomo.

Cards are impacted by general asset (re)valuation, employment, and people’s liquidity requirements as it impacts short term supply and demand.

They all have different coefficients, but would suspect coins and cards have higher correlation and r squared than cards and stocks.

Originally Posted by joshuanip

Don’t mean to hijack the thread to stocks but growth (no dividends) is particularly (over) valued in low rate environments because it’s the compound affect of discounting that future growth is muted.

Hence value without any dividends (spending $). Add demand from stock buybacks and lack of options being us (market) is the best house in a bad neighborhood and the reduction Of publicly availble stocks from pe buyouts, and you have a meltup

My nomination for the Net54 Bryson DeChambeau Award.

However you failed to mention the spin rate of the spokes in the card market, which is less of a factor in stocks with potential dividend accrual resulting.

[TanksAndSpartans]

I'd be lazy to do the book keeping - same way I feel about bitcoin. With my TD Ameritrade account I can make as many trades as I want - I know I'll be getting a tax statement at the end of the year.

I think it would be interesting if we started seeing funds that invest in sports collectables - maybe they already exist.