Investing in Collectibles? Dumb Money versus Smart Money and the Mindset Behind Each!

[@markvega4110]

I wish I started watching your channel during the pandemic. After collecting $1 bin comics and moving to high grade comics during the pandemic. I began to understand the market much more. After seeing so many comic sales on Instagram I noticed which comics/titles sell for premiums, which are in demand and which ones are high in print run. I just made profit on a ASM #40 that I bought for $150 raw and sold it for $300. I'll gladly take the profit because I'll definitely have another chance of coming across one in the near future.

[@financialphilosophers]

GREAT discussion on the importance of diversification and not going all in on one asset class.

[@stevenewsome5306]

Love these videos. They’re all excellent, but This one and realistic financial advice video = 🔥

[@winstonw2020]

Great video, alot of great advice that runs contrary to alot of "modern" collector (speculator) thnking. Thanks for the great content.

[@monkey39128]

There's a lot of people in Pokémon and Magic buying expensive products that they didn't want a year ago when it was cheap. Buy high, sell low I guess.

[@leehaskins307]

I’m a sports card collector but do buy 1st edition 1999 pokemon cards.. i’ve been on the side of buy not that low, and keep a LONG time… pretty sure in a long time it is left to right up…just my opinion on the 1st edition cards..

[@monkey39128]

@@leehaskins307 I think vintage is the best bet if you're holding for longer. There actually seems to be more bargains in the vintage market than the modern at the moment which is bizarre. I'm more talking about the people buying modern ETB's and booster boxes for double or triple the price that they could've bought it at a few months ago. People keep buying after the train has already left the station. Not that I'm complaining, if they want to buy at these prices then I'm happy to sell to them. 😂 Were you in sports during the junk wax era?

[@leehaskins307]

@@monkey39128 I started in about 1970 as a small kid.. collected 70s cards for 10 years.. then grew out of it and returned around 2018… I still had all my 70s cards in shoe boxes which is why I like vintage cards more the modern cards.. I’m about 75% vintage/pre-war and 25% modern ultra modern… I’m glad I did not collect in the junk wax era !!! alot of my 70s cards are still have value.. and I found three 79 gretzky rookies in a shoebox…

[@RmforeverTv]

great video shawn!!!

[@nevercold808]

In my opinion, the current card market, whether it be sports or TCGs is the perfect example of dumb money. This stuff is unsustainable and completely off the rails.

[@monkey39128]

Problem is people will say "But Pokémon's been going for 28 years, Magic's been going 32 years, Yu-Gi-Oh 26 years!" not realising how little time that is in the grand scheme of things. Sports is on a whole different level. I've seen videos of nutters opening modern boxes that cost $20000. How the f*ck can a newly printed product be that expensive?! 😬

[@nevercold808]

​@@monkey39128And the ROI of such boxes are almost always abysmal. It's all good, tho. I just sit back and watch the show.

[@dannybradley8391]

​@@monkey39128 248 years isn't a long time either yet people are more than happy to put everything they have into the S&P. Everything is nuanced and perspective. An argument can be made that the Pokémon IP is more stable than that whole country at present. At the end of the day just diversify because like anything, America will fall and anybody claiming "dumb money" at that time will themselves be dumb money.

[@DangerMousesEyePatch]

It's dumb money only if you hold and don't flip.

[@INHUMANENATION]

Have a price and don't mind being priced out.

[@monkey39128]

Yeah there's nearly always another one. There are some "you'll never find one again" items but most of us don't have them.

[@INHUMANENATION]

@@monkey39128 Well I think if collecting is you aim then you can justify any price of you want and can afford to. Whereas anyone looking to make profit off investments needs to have a general idea of market value so as to gauge appropriate entry and exit levels. For example, I don't collect or play pokemon but I'm a trader at times and when I heard of the 151 boon I went on eBay and grabbed 4 UPC 151 bundles for 130 each. That was two weeks ago and they are now valued at 250 ish. Still I decided to hold until they hit 400 a kit and then I'll list them. They might never hit that but the original funds where from some profit I took from a space stock I'm up big on and piled into an etf with some change for the upc's. So even if I take a bath on the kits it's all gravy so to speak. Which I think is what Reserved is talking about to a certain extent.

[@victorysla]

Do more of these videos!! Im a masochist, need that stale donut to the face!

[@robin-g1j]

Millionaire formula question: When you subtracting your liabilities from your assets do you also need to substract all the future income taxes from tax deferred investments accounts? ie 401k, bonds, etc.. Or is it just pre-tax millionaire vs post-tax millionaire?

[@ReservedInvestments]

Taxes should be considered…in my humble opinion.

[@custum18]

The scanning is still going on. One of the companies that does it recently released a bunch of customer images of new high end boxes and said they have a ton of business.

[@PokeSeph]

Today I learned I am a Timmy with dumb money

[@leehaskins307]

hah… good one...

[@sleepingduird9539]

Thanks

[@triforcelink]

I’d love to see a video from you about investments you’ve made in your life that have lost money. I think it’s easier to learn from other people’s mistakes than their successes.

[@HermannTheGreat]

Hey Shawn, how much diversification do you think is wise outside of an S&P500 index fund for someone entering their 40s? Do you shoot for a certain mix of bond vs stock vs commodities and also alternate?

[@ReservedInvestments]

Depends on what you are comfortable with. I do hold a bond index fund as well.

[@johnschroeder1545]

I FU$$ING LOVE COIN COLLECTORS!!!!!!!!!!!!!!! ahhhh that felt good...

[@treyw1171]

Great video on collectibles/alternative investments. Do you think the recent run-up in gold prices, as of Oct 2024, is speculative or more of a new semi-permanent high related to long term dollar devaluation/inflation? Same with SPY -- is the high PE valuation due to some great corporate earnings or due to longer term inflation trend?

[@ReservedInvestments]

I think for the time being gold prices will remain fairly consistent. I’m not against a 1%-5% portfolio position in gold, but anything more than that over the long term is foolish in my opinion. Index funds have killed gold over the long term.

[@Xodiac_]

Hello, I think your Videos are great. I have a question. What is a Kimmie, a Timmy and a Poindexter? I am serious,Please explain it to me like I am 5. Thank you in advance.

[@ReservedInvestments]

A 'Timmy' is someone who doesn't know any better and continually makes bad (i.e. dumb) decisions. A 'Kimmy' is the female equivalent of a 'Timmy.' A Poindexter is someone who follows trends and speculative bubbles to their own financial detriment. Does that help?

[@monkey39128]

Go to the comments section of any Pokemon investment video. You'll get to see thousands of them in their natural habitat.

[@victorysla]

My ears were burning 🔥

[@Xodiac_]

@@ReservedInvestments Awesome ! Thank you so much for the reply.

[@moose10661]

Hi Shawn, I like your shades of grey metaphor. I think it applies to many things in life. Although, you are very binary with a hard “No!” When it comes to options trading, yet there are shades of grey in that also. The oft quoted statistic is that 80% of options expire worthless. But as I’m sure you know there is way to flip the script, and use the time decay (Theta) in your favour by selling covered calls on securities you own, and cash secured puts on securities you wouldn’t mind owning. Most S & P index funds offer options if you want to go that route.

[@ReservedInvestments]

I would never engage in options trading in relation to the S & P. The losses would be magnified.

[@moose10661]

@@ReservedInvestments That could certainly happen if you sold a put (s), and the S & P is below your strike price at expiration, You then would be obligated to buy the S & P at a higher price then it is currently selling for. However, this wouldn’t happen with covered calls. They are four things that could happen at expiry: 1. The S & P stays the same. You keep the equity and the premium. 2. The S & P goes down. You keep the equity and your paper loss is offset somewhat by the premium. 3. The S & P goes up but remains below your strike price. You keep the equity and the premium. 4. The S & P goes up past your strike price. Your equity is called away and you make a profit up to your strike price plus you have the money from the premium. Selling covered calls is a different mindset. You have to be willing to forego any profit you would have made if you just bought the equity and not sold a covered call against it. The only time it really hurts is when a stock pops on earnings or a takeover bid and you don’t participate in the huge jump. But this shouldn’t be a problem with a S & P index fund. If you consistently sell covered calls you should be able to make 15 - 20% on an annualized basis.

[@cheappokemontrainer]

Sarcasm- not my pokemon cards, they different from other collectibles 😮

[@hartspot009]

But Shawn! What about the Stanley Cups?? 😂😂

[@ReservedInvestments]

😂

[@patiencezero-xc9zl]

I am retiring this month with millions in net worth and assets and guess what percentage of that was built on collectibles investing years ago..........zero! Now, because I am a collector and hobbyist first, I am.going to have a little fun. Unless you are a professional with decades of experience in authenticating rare items, no other strategy than what I stated should be considered. Save and invest in the U.S. economy in a diverse fashion and with time you WILL do well. We live in an economy that is hard on folks who lack common sense.

[@scottd8624]

Hey Shawn, I really enjoy your videos. KZbin needs more content creators with your education and experience. Too many content creators talk out of their asses. I shake my head in disbelief and can't fathom how these 25 year old charlatans with minimal experience and no education have 1 million+ subs. Additionally, i couldn't agree more re your statement about diversification. I can't agree with your statements re gold. You refer to gold as a poor investment. In my opinion, gold is hardly an investment and more akin to currency or more appropriately a currency alternative. You might as well refer to cash as a poor investment. Thoughts? Gold serves as a good alternative to a CD account in my opinion

[@ReservedInvestments]

We’ve covered this already in oh so many videos, so you already should know my response about gold.

[@fatheadcat9958]

Gold in its raw bullion form is a hedge against inflation. Investment gold are things made from gold, such as jewellery by prominent designers or graded ancient coins and ancient artifacts, etc. Of course if there is an armageddon event nobody will care about how high a grade your coin has... but then unlike savings accounts at least you have something to barter with 😂

[@ReservedInvestments]

Gold is a horrible inflationary hedge. If you study finance, this is covered. blogs.cfainstitute.org/investor/2024/06/05/gold-and-inflation-an-unstable-relationship/

[@KeyKiller74]

Sometimes dumb money rewards you, about a week a Costco released NFL Donruss exclusive box that contained 1 oversize Downtown card. And that caused a panic from all the card hobby people. I bought about 30 boxes & sold each one for around $200😂 I was seeing others do the same grabbing the full pallet & there was still more of this shit to go around. I made thousands of monies on ebay alone🤑👍 By the end of the day the music died because we have the fine people on Twitter X showing & telling everyone to be careful about overpaying these are overproduced to the moon. The power of flipping is truly rewarding 🧐💰

[@DangerMousesEyePatch]

That's why he's said the key to making money in these markets is flipping and keeping the money moving.

[@rodpanhard]

The great thing about having "stuff" over finacial products is there is no counter party risk, my biggest concern is that if there is a major financial disaster or a major global war all the frivilous stuff that is providing people with incomes all goes in an instant, the Trading Cards, the Twitch gamers, the KZbin "reacting to" and "food reviews" videos etc. I dont grudge the way anyone makes a living more power to them but the world will get serious and all these things will end. So many today suffer from normalcy bias, it's not happened yet so it never will.

[@jackthompson2497]

People on wall streets bets are dumb