What is the Expected Return on Collectibles? - Beanie Babies & NFT's

The Beanie Babies bubble is a particularly entertaining story which highlights all the hallmarks of a mania. Mass delusion. Speculation. Out of control expectations. The herd mentality.

Right now, it might appear that we are in another collectibles boom, in February this year, a Michael Jordan basketball card sold for $738,000 at auction. The exact same card had traded for more than half a million dollars less just a few weeks earlier. A Klon Centaur guitar effects pedal is being sold for half a million dollars. At Monterrey car week a McLaren F1 just sold for over $20 million dollars, and a pair of Kanye West’s trainers that he wore to the 2008 Grammys - became history's most expensive sneakers after selling for $1.8 million

So, should you as an investor buy beanie babies, Kanye west’s old shoes, NFT’s, meme coins or any other collectables? These are all running up in price right now, grown men are discussing their collections of Pokémon cards here on YouTube. Children’s entertainers like Logan Paul are selling cryptocurrencies and NFT’s to their audiences. Are these items a good investment, and if so - which are the best investment? We look at the long term returns of collectibles to see what your expected return might be?

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[GodfatherXXI]

"Noted children's entertainers like Logan Paul..." I screamed with laughter with that gem of a line. Thank you, Professor!

[mukomanathan]

"Grown men are discussing their collections of pokeman cards" Lmao Patrick woke up and chose violence today

[smarthustle]

"Sometimes collectors lose interest in their collection over time too. The actor Nicholas Cage was a passionate collector of Elvis Presley memorabilia, going so far to marry Elvis's daughter in 2002. Three and a half months later they divorced..." 😂😂😂 this is too funny.
That's why I love your channel informative and dead pan humour.

[jdockii]

The dry humor executed to perfection. Just brilliant

[ianirwin]

The intriguing fact is that Beanie Babies have infinitely more real value than all the NFTs combined

[justindchaney]

I still have the beanie babies my grandmother and I collected because I’ll forever cherish the memories of collecting them with her. We never really cared about the price, and we simply enjoyed going to look for them at the local hobby shop.
My great uncle, on the other hand, went all in on the beanie baby speculation mania. He had a collection valued at $30k at the height of the insanity, and bragged to anyone who’d listen that he had a “Humphrey the camel” beanie baby.

[Kevin_Street]

Thanks for another great video!

Quick story: Once I went to a client dinner sponsored by my financial advisor's bank. It was a great opportunity to meet other clients and see how much I did or didn't resemble them. The fellow sitting on my left was full of fascinating stories about how he made his money. Apparently he spent years going to estate sales and buying anything of value that was priced too low. He bought gold, jewelry, antique watches... and Beanie Babies. This was before '99, so he made a ton of money buying up people's Beanie Baby collections and selling them to other collectors.

What I learned from him is that it's possible to make a lot of money from collectibles, but the person making the money is never the collector themselves. It's the dealer selling the collectibles to them.

[Iudicatio]

LMAO, I was a kid in the early 2000s and I remember my grandmother getting angry at me because I tore the ear tag off of a Beanie Baby. When I asked her what was wrong with that, she said that "now it can't go up in price." I remember feeling like this concept might be slightly ridiculous even as a child.

I really learned the hard lesson about collectibles through Neopets though. There were very rare items you could sometimes get without paying a lot of coins that were theoretically worth a lot, but they had no use and nobody would buy them if you tried to sell.

[unstoppableExodia]

LOL nick Cage marrying Elvis’ daughter to add to his Elvis memorabilia collection 🤣🤣🤣🤣🤣

[whiterabbit]

You've mentioned in other videos that you're not trying to be funny and I believe you, but your incisive observations about collectibles (e.g. "second-hand celebrity shoes") made me laugh.

My father passed away recently and your videos are oddly comforting. The gems of humour buried in your professorial delivery catch me so off guard that I burst out laughing and I lose sight of grief for a few moments.

Thank you, and keep up the good work. 🙂

[willcarbone]

Glad to see someone is actually covering this beyond the NFT space. I'm in my 20s and I hear stories of my friends opening packs of baseball/sports cards that you can buy at Target, and flipping the popular player cards for hundreds of dollars. Just a few years earlier, you couldn't even give these cards away. True sign of a bubble

[jeremynewell]

Beanie Babies is EXACTLY what I thought of in the moment that I realized what NTF's are and how they work.

[lfc-europe]

Are we including Patrick's somewhat incredible watch collection here?

Five stars.

[Hstings]

So what you’re saying is we should invest our life savings into Jake Paul’s dink doink if we want quick access to outsized returns? Thanks Patrick!

[Pat_KraPao]

I bought a prized guard dog to protect my stuff. Turns out the guard dog is the most expensive thing I own.

[simio]

This reminds me of Karl Jobs's video about the retro video games "collectors" that I watched recently, where the price and hype are completely made up by a few people trying to enrich themselves, not by a rise of general interest in them.

[AFNick]

Great video! This phenomenon is due to combination of negative real rates and generation amnesia of last cycle. The last Pokémon card mania in late 90’s was my first experience with an asset bubble and learned the hard way about risk management in my childhood.

[Choonzord]

What I appreciate most about your content, Patrick, is your temperament. You are steady, calm, objective, collected. It mirrors the kind of demeanor and temperament I want to project as well and it's quite refreshing how even-handed you are in a sea of hype and inflections.

[jeremybarriga]

my xgfs mother was into the beanie craze, up to her silly neck.
the savy shopkeep who supplied her needs would literally stay open after hours to accomodate her schedule, and to make her feel special.
we waited in the car while she went in .
through the glass door, i could see the little man passing her the beanie baby over the counter.
$80 later, she came out with her latest " rare find' acquisition, in a brown bag.
my mind was blown.
not too long ago, my x told me she is selling the babies -"and theyre worth ALOT of money, ya know."

[tytyhedley]

Pikachu 😂😂😂😂 I’m dead. I love it. That hit hard