Have You Ever Thought About Investing with LEGO
By: Walid Ao
Tags: Passive Income, Money, Personal Finance, Side Hustle, Finance

How to invest in LEGO sets?

Like any investment, investing in LEGO requires the investor to analyze the different offerings, the supply, the demand, to buy cheap, and sell expensive. When it comes to physical items such as LEGO sets, storage is also an issue that needs to be considered. A step-by-step guide for investing in LEGO sets is given in the following:

Find the right set

The right set brings more money

The best set to buy is a set with high demand and limited release. Brickpicker is the place to be to check on the set’s ratings, prices, and end-of-life (EOL) information. The site will help you to determine which sets are worth the investment. The site also allows you to set a price alarm to inform you when a certain set is on sale.

There is no defined formula for finding the right set; there are many factors at play. The right set can be a unique limited edition set, a set with a unique mini-figure, or a set that will be discontinued soon. For example:

LEGO Central Perk set #21319 is a limited edition collectible set to celebrate the 25th anniversary of the sitcom show Friends. This limited set with its unique mini-figures was released in 2019 and has, thus, not reached its EOL yet. But eventually, this will happen, and this set will be discontinued.

LEGO Voltron set #21311 is a set I bought in summer 2018. LEGO now discontinues it. The current reseller price is 35% higher than the original price. A 35% growth in this short period of time is magnificent.

LEGO continues to release limited and hyped sets, the opportunities will continue.

Patience is the key

Wait, wait, and wait some more

LEGO is not a fast buy-and-sell side hustle as it is the case in the sneakers and hypebeast market; it is a buy-and-hold investment strategy.

The more you hold onto a set, the rarer it will become. However, certain milestones might increase the set value in a short period of time, which you don’t want to miss. Also, LEGO might announce a newer version of any set at any time. For example, a 10th anniversary for a movie will increase the LEGO set value of that movie for a short time. At the same time, LEGO might announce a re-release of this set in the same period to celebrate the 10th anniversary.

Remember the Millennium Falcon from 2007? LEGO re-introduced the set in 2017, which took away from the original 2007 set's resell value.

Storage is important

Keep your finger away

Remember that you bought the set as an investment and fight the urge to build it. Sets in unopened original LEGO boxes maintain their value over time, and their price growth is much higher than used LEGO sets. If you are a collector yourself and want to add the set to your collection, buy two sets: one for you and one for investing.

Do not mix work and pleasure

Keep the LEGO boxes away from direct sunlight and moisture. Make sure you have a good, isolated, sufficient place to store your assets.

If you are planning to purchase the sets online, it is better to buy each set individually. In this case, you will have a separate package for each set. You can use this package to send the set once you sell it.

Limit your investment capital in LEGO

Diversify your assets

Buying and reselling LEGO sets is a side hustle and not the main hustle; therefore, limit your investments in LEGO sets and do not go all-in. Remember the points we discussed above and keep in mind that the resell market is precarious, and you should not have all your eggs in one basket.

Keep a clear head and fight the temptation to buy more and more sets. Also, do not get upset if you missed the chance on a set or two. There is plenty of fish in the sea, and missing one or two sets is not the end of the world.

Don’t overwork it

Keep it a side hustle

There is no need to look at the set prices every day. This stress is unnecessary and counterproductive. Limit the selling to a month or two er year, preferably near the holiday season. Limit your energy and focus to sell only in this period and keep the sets in your possession for the rest of the year.

Understand the platform before you sell on said platform. Some platforms demand up to 15% of the selling value as their commission. Other platforms are free, but the discussions and bargaining with potential buyers are endless.