Taking My Hacks
Why Buying Through the Lens of a Collector Is Best
Over the past year, there are certain words that are being used more frequently in our industry than in years past. Terms such as “asset,” “investing” or “returns” are just a few, but I think you catch my drift. From a personal perspective, I have written and said on countless occasions that if your ONLY motivation in this hobby is to make money, then I would strongly suggest taking up another endeavor.
That said, it would also be ridiculous not to acknowledge the financial component of collecting and the fact that some collectibles have outperformed what are considered more traditional forms of investment over the years. To me, it is about balance. Participate because you enjoy it, aside from the potential for financial rewards over time, but be informed and buy intelligently.
Recently, I was talking to a longtime collector who had just parted ways with a fantastic item, one he knew could never be replaced based on its quality and scarcity. It was, in many respects, a 1-of-1. He said something that really resonated with me, and I think it will resonate with many of our readers too. After feeling down about letting go of an irreplaceable piece, he said the following:
“You know what’s funny? It seems like every time I try to buy something for the sole purpose of making money I never do, but nearly every time I buy something because I love it, I always seem to make money.”
I never thought about the subject in these terms, but what he said hit home with me instantaneously. There is a difference between buying something that you absolutely love as a collector versus buying something because it appears to be a good deal. In other words, sometimes collectors buy things that they aren’t necessarily passionate about, but the purchase could be a means to an end. It could end up being trade bait for something you want more down the line or you might simply view it as a solid buy from a financial perspective, one with potential for a good return.
If I buy items through the lens of a collector, however, it is likely other collectors will see what I see when it comes time to trade or sell it. Not all collectors desire the same things, but it is important not to ignore what draws you to an item. There is an instinctual or emotional reaction that great items generate. It may sound a tad simplistic on the surface, but if you feel that when you see it, it is likely some meaningful percentage of fellow buyers will feel the same way.
If you are strictly focused on dollar signs, it is easy to see why financial gain can become more difficult. You hear similar things in sports all the time. If a hitter tries too hard to hit a homerun, it is unlikely that they will. If a boxer tries to knock someone out, it is also unlikely. These results are often generated naturally if you are focused on the right things. In baseball, it could mean sitting on the right pitch in the right location, staying relaxed and not trying to do too much. In boxing, it is very similar. It’s unadvisable to force the knockout. You try to put your punches together in the right manner and at the right time. If you do, the knockout will come naturally.
When my friend made the comment highlighted earlier, my mind went immediately to real estate. If I am focused on buying a home that would act as my primary residence, not only am I going to pay attention to the details, I am going react to the way the home hits me on an emotional level. Attributes like its exterior curb appeal matter because I will pull into my driveway every day. Beyond the square footage and its historical value, the more important question might be how would I feel about living there? Am I excited about the prospect of having my family grow roots there or am I laser focused on calculating the passive income from the place acting as a rental property instead?
In the case above, both approaches have merit, but remembering to see the home as a place where YOU might live could provide the added perspective needed to make the best overall choice. The things that matter to you, as a home buyer, are going to matter to others. It is no different in our hobby. With all this talk about investing, remember not to leave your collector lens on the shelf when considering a purchase. It is often your best advisor.
Never get cheated,
Joe Orlando
President & CEO
Collectors Universe, Inc.