In the realm of unconventional investments, a man from New Jersey has managed to earn more than $500,000 in profit from buying, modifying, and reselling Lego kits. A mere hobby from childhood has blossomed into a very lucrative side job. Star Wars collections or custom made building blocks, the Lego kits have turned to be a shocking yet profitable gold mine to offer sleek returns to its collectors and investors. This is the full story of how a New Jersey man made his two-year Lego investment turn into a fortune.
How did he get started with Lego investing?
Shane O’Farrell, originally from Ireland, was no stranger to Lego as a child. Like many, he enjoyed the intricate, imaginative world of Lego sets but never imagined they could hold serious financial value. Fast-forward to adulthood, O’Farrell recognized the investment potential in rare Lego kits, some of which had soared in value by as much as 400% within a few years. That realization prompted him to buy and flip popular sets on online platforms, generating nearly half a million dollars.
According to O’Farrell, traditional stock investments were not giving him the returns he desired. “The 8% a year I am making in the stock market is not really going to get me where I want to go. It would take decades,” he said. Turning to Lego as an alternative investment gave him quicker returns with far less effort.
Why are Lego sets so profitable?
Several factors make Lego a surprisingly valuable investment. Let’s look at some of the main reasons collectors like O’Farrell are profiting:
- Nostalgia factor: Adults who grew up with Lego are often willing to pay premium prices for discontinued sets, bringing a steady demand for older kits.
- Limited supply: Lego releases new sets every year and rarely re-releases older ones, creating scarcity in the market.
- High-quality collectibles: Unlike some toys, Lego sets have a consistent build quality, making them durable and collectible over time.
- Underpricing in the primary market: Many Lego sets are sold at relatively low retail prices, allowing savvy investors to profit when the sets become rarer.
What kinds of returns do Lego investors see?
O’Farrell’s profits reveal that Lego investments can yield surprisingly high returns. A standout example he shared was a Star Wars TIE Fighter Pilot helmet model, which was priced at $60 before it was retired in 2021. Within 18 months of its retirement, he sold the set for $350 – a nearly 400% return on investment.
This trend is not an isolated one. A 2022 study found that the resale value of Lego kits appreciates by 11% annually, outpacing many traditional assets like stocks, bonds, and even gold. For O’Farrell, this means a considerable return on small investments, without the unpredictable risks tied to the stock market.
How can you start investing in Lego?
If O’Farrell’s success has sparked your interest, there are a few basic steps to get started in the world of Lego investing:
- Research trending sets: Popular themes like Star Wars, Harry Potter, and discontinued special editions often gain value after retirement.
- Buy in-store or online: New sets from official Lego stores or large retailers provide the best opportunities for buying low.
- Hold and sell at the right time: Most sets start to gain value within one to three years of being discontinued. Platforms like eBay or dedicated Lego marketplaces can help you find buyers.
For O’Farrell, the time it takes to buy and list these kits is minimal, making it an ideal side gig alongside his full-time job. “The time it takes is very minimal, so I can do it on top of my full-time job and create a supplementary income,” he explained.
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