An asset is only worth something if you can create or expect to create a positive cash flow from it.
IE
Owning a business is good because you expect to be paid from the earnings
Owning a house is good because you can rent it out and receive rent
Owning stocks are good becuase you might get paid a dividend (or not and you are simply hoping for appreciation)
Even investments like gold, diamonds, art, baseball cards, and comic books can be good because they might go up in value. My impression of the current collector market though is that they are all bad investment! If I buy superman #1, it is rare and could very well appreciate more than my WACC (weighted average cost of capital...aka, my opportunity cost). If I buy anything modern though, the chances of it appreciating at a faster rate than my WACC are low. Buy new comics because they are fun! They suck as an investment.
If you want to buy a collectible though, it is only worth it if you are going to get better than your WACC (5% in a CD...10% in the market), otherwise it is a losing proposition. Furthermore, in most cases, you have no idea whether a modern collectible will be worth what you paid for it in 10 years or nothing.
As a teenager, I got caught up in the speculating hoopla of thr late 80s/early 90s. How many copies of X-Men #1 did I buy anyway? I was young and dumb. More importantly, the comic companies hid their production numbers from the public so I was at a great disadvantage. Oh ell, live and learn.
An asset is only worth something if you can create or expect to create a positive cash flow from it.
IE
Owning a business is good because you expect to be paid from the earnings
Owning a house is good because you can rent it out and receive rent
Owning stocks are good becuase you might get paid a dividend (or not and you are simply hoping for appreciation)
Even investments like gold, diamonds, art, baseball cards, and comic books can be good because they might go up in value. My impression of the current collector market though is that they are all bad investment! If I buy superman #1, it is rare and could very well appreciate more than my WACC (weighted average cost of capital...aka, my opportunity cost). If I buy anything modern though, the chances of it appreciating at a faster rate than my WACC are low. Buy new comics because they are fun! They suck as an investment.
If you want to buy a collectible though, it is only worth it if you are going to get better than your WACC (5% in a CD...10% in the market), otherwise it is a losing proposition. Furthermore, in most cases, you have no idea whether a modern collectible will be worth what you paid for it in 10 years or nothing.
As a teenager, I got caught up in the speculating hoopla of thr late 80s/early 90s. How many copies of X-Men #1 did I buy anyway? I was young and dumb. More importantly, the comic companies hid their production numbers from the public so I was at a great disadvantage. Oh ell, live and learn.