Investing in Lego ensures good returns
Lego blocks are more than a child’s toy — the bricks have delivered a better return than the stock market in the past five years.
If you had invested in the FTSE All Share five years’ ago your investment would have grown by 64pc today.
However, during that same period some sets of Lego have delivered growth of more than 600pc, according to BrickPicker.com, a Lego investment site. Older sets have performed even better.
The Winter Village Post Office set, which includes seven minifigures, retailed at £49.99 five years’ ago. It would now fetch £166.87.
A set of the Black Pearl, the ship from the 2003 film Pirates of the Carribbean, was sold for £84.99 in 2011. This has since increased by more than 350pc — it is now worth £308.53, in mint condition in a sealed box.
The largest percentage increase on BrickPicker’s list in recent years is the Sungnyemun, a model of South Korea’s pagoda-style gate built in the 14th century. Since 2012 its value has risen by 604pc — from £29.99 to £181.14.
Sets made before 2011 have seen higher percentage growth.
The special edition Naboo Starfighter, which featured in Star Wars: The Phantom Menace in 1999, has seen growth of 1,143pc since it first hit the shelves in 2002. It originally sold for $39.99 (worth £32.40 at current exchange rates) but is now being sold on eBay for $496.93 (£402.73).
The price of the Rebel Snowspeeder set, as seen in the 1980 episode of Star Wars: The Empire Strikes Back, has risen from $129.99 (£105.41 at current exchange rates), when it came to market in 2003, to $ 1,521.40 (£1,232.82) today.
However, Jeff Maciorowski, who founded BrickPicker.com with his brother Eddie, said the oldest sets are not necessarily the most valuable.
He said: “Basic sets from the 1960s and 1970s may only be worth around $20 now because there’s no theme, they’re easy to make and lots of them were produced.”
Mr Maciorowski said the sets that tend to perform the best are those that are likely to remain in demand in the future. These tend to be sets associated with popular films, such as the Star Wars collection, or because they are iconic buildings, such as the Statue of Liberty or Taj Mahal set.
“Modular” building sets, such as Cafe Corner and the Winter Village Post Office, are also likely to do well, according to Mr Maciorowski.
He said: “These sets, such as the pet shop, the bank and the fire brigade, are highly collectible. People tend to put them together and build a whole town.
“They’re always popular and often the most hoarded. Collectors will always be looking for these types of sets.”
Lego investing tips
Look out for Lego bargains. Mr Maciorowski said there have been some “astronomical” discounts on Lego this year, such as three-for-two offers. “If you can get 50pc off you’re pretty much guaranteed a return in the future,” he said. For rarer sets he suggested buying at a 10-12pc discount. He said retailers tend to start clearing their shelves to make way for new sets towards the end of the year, ready to refill in the Spring, and may start to offer reductions.
Themed sets will be more valuable — but not all will perform well. Star Wars sets are some of the best investment Lego pieces, while Mr Maciorowski said the Lord of the Rings set “just did OK”. He said: “You need to bear in mind what’ s going to have the broadest appeal. Spaceships and superheroes are always popular.”
It’s not all about the size. Elaborate sets with thousands of pieces may be attractive to collectors but smaller ones, such as the architecture sets, also “do fantastically”, according to Mr Maciorowski. “They look classy and can be displayed in your bedroom. Plus most people can tell what they are straight away. People want to get their hands on them as they go so quickly,” he said.
“Remakes” will hurt the value. If Lego decides to bring out a bigger and better version of a set you already have — a special edition of Hogwarts, the school in Harry Potter, for example — expect to see demand for your old set fall and its value diminish.
Keep the set pristine. If the box is damaged when it is delivered go back to the seller or website and see if they can offer a discount or replacement. Mr Maciorowski said Amazon gave him 20pc off when he complained about damage to a Lego box.
As with any investment, it’ s hard to g aug ethe perfect time to sell. However, there is likely to be more buzz around Lego sets associated with films when a new movie is released. There is also going to be buzz around particular sets if they are discontinued or become harder to get hold of. Amazon and eBay are the best places to connect with collectors.
Do your research when selling. Check the sold price on eBay of similar sets and use this as a benchmark. The listing price is irrelevant.
You need to bear in mind what’s going to have the broadest appeal. Spaceships and superheroes are always popular.” Jeff Maciorowski, founder of BrickPicker.com