Old LEGOs sets could be more valuable than gold, large stocks, and bonds

Researchers from the HSE University in Russia studied the prices of LEGO sets from 1987–2015 and found average returns on those sets of “at least 11%” annually:

We study financial returns on alternative collectible investment assets, such as toys, using LEGO sets as an example. Such iconic toys with diminishing over time supply and high collectible values appear to yield high returns on the secondary market. We find that LEGO investments outperform large stocks, bonds, gold, and alternative investments, yielding an average return of at least 11% (8% in real terms) in the sample period 1987–2015. LEGO returns are not exposed to market, value, momentum, and volatility risk factors but have an almost unit exposure to the size factor. A positive multifactor alpha of 4%–5%, a Sharpe ratio of 0.4, a positive return skewness, and low exposure to standard risk factors make the LEGO toy and other similar collectibles an attractive alternative investment with good diversification potential.

Abstract from LEGO: THE TOY OF SMART INVESTORS

That doesn’t mean you can necessarily buy LEGO sets and hold onto them, expecting their value to buy you a house. But if you happen to have some old mint condition Star Wars sets, it’s worth getting them valued.

(via designboom)

Related to the pricelessness (heh) of gold: 12 objects unnecessarily covered in gold

And more on LEGO: Arndt Schlaudraff, the LEGO® brutalist and Ekow Nimako’s Afrofuturistic LEGO® universes

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