Exploring the Financial Benefits of Collecting Lego, Handbags, and Whiskey

Collecting items like Lego, handbags, and whiskey might not just be a hobby but a lucrative investment. According to a recent report by the Financial Services Council, 7% of people have collectables as part of their investment portfolio. Gertjan Verdickt, a finance expert from the University of Auckland, delved into the financial benefits of collecting in his book, The Passion Portfolio.

Verdickt’s research revealed that certain collectables can outperform traditional investment options like stocks and bonds. For example, whiskey has shown an average annual return of 17%, surpassing stocks at 10%. Other collectables like baseball cards and wine also proved to be profitable investments. The three main categories of collectables that can serve as investments are drinkables (wine and whiskey), wearables (watches, handbags, and jewellery), and other collectables such as art, stamps, Lego, and vintage cars.

However, despite the potential financial gains from collecting, there are drawbacks to consider. Unlike stocks that can be easily sold on the stock exchange, collectables can be more challenging to sell. For instance, there may not be a market every day for selling whiskey. Additionally, collectables do not provide dividends like traditional investments, but they offer emotional value as tangible assets.

Verdickt emphasized the emotional dividend that comes with collectables, highlighting that using a handbag or playing with Lego can still increase its value. Even if these items are not in perfect condition, they do not depreciate to zero value. While investing in collectables can be profitable, it’s essential to weigh the potential selling limitations and lack of dividends against the emotional and tangible value they offer.

The podcast, The Prosperity Project, hosted by Nadine Higgins, explores the investing power of collectables in more detail. Listeners can tune in to learn more about how collecting items like Lego, handbags, and whiskey can be more than just a passion but a wise financial choice. Episodes of The Prosperity Project are available on platforms like iHeartRadio, Apple Podcasts, Spotify, and other podcast streaming services. Tune in to discover the hidden financial benefits of collecting unique items today.