It might seem overwhelming to invest in Lego, because using a children's toy can strike some as unorthodox. Lego can be a diverse and profitable hobby and investment strategy, but it does depend on what approach you take. To get the right balance of time and reward, choose which Lego investor type you'd like to be.
1) The Investment Broker: Long Time, High ROI
You are the person who doesn't have a lot of extra time, but are still intrigued in alternative investing strategies. You don't mind tying up a few thousand (if not more) in non-liquid assets, and you are more investing on the long term. You also don't want to put too much time and thought into your Lego investment. You are probably the Investment Broker Lego Investor. In this case, the ideal strategy is to take a week or two and carefully plan out some sealed sets to acquire, then monitor them every couple of months. Buy some sets that you think will increase in value, then store them for a couple of years (sealed, of course) while they acquire value. Think of managing stocks, except the stocks are Lego sets and they only go up. To get started, I'd suggest heading over to BrickPicker. On their forums you will find invaluable advice about what sets to make your initial investment on, as well as a stock-like ticker for watching the value of your hoard rise. Don't forget to check back here occasionally as well.
2) The Intuitive: Time Investment, High Return
You probably have plenty of time on your hands, and not much money. You are intuitive, good at recognizing patterns and being diligent. No matter what walk of life this period of extra time occurs in, as long as you have the concentration this is the quickest way to turn a profit with Lego. The goal here is to buy bulk lots of mixed Lego and determine what is valuable, then sell smaller lots to turn a profit. Start by buying Lego lots from yardsales or similar venues (check our page here for online sources). Keep your eye out for minifigures and completed sets, both of which will help you resell. Check out our guide for selling bulk lots which will guide you through the process. Don't spend more than $100 on your first investment--this is a process that requires knowledge of sets and a knack for figuring out what is valuable, so the first run through might not produce the most value. Eventually, you can move to a consignment model, where you agree to sell others' Lego for splitting the profit. This enables you to sell with no initial investment, although you should be sure of your selling abilities.
3) The Gambler: High Risk, High Reward
You don't mind risk, and you have some money available to start a new hobby. This approach is more of a hobby that produces money rather than a real investment strategy. You'll be dealing mostly with minifigures, the more collectible, the better. While minifigs appreciate, its not really enough to justify letting them sit around for a long time. Instead, try arbitrage and exploit the price differences on different sites. Selling from Bricklink onto Ebay or Amazon is a classic way to exploit price differentials. Prices vary by week at times, and so selling a figure when it is in demand is key. Another option is to break sets and sell the figures and the pieces separately. Buy a set (a good example is a battlepack or set with rare figures) and then break the set into pieces and figures. Wait until the set retires, and the figures will be worth the initial investment of the set. To profit further, sell the parted out set on a Bricklink store.
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