A collectable or an investment?

The most important thing with investments is the expected return on your investment and the expected return of your investment. _The Investor’s Creed

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Where people go wrong with collectables is that they think of them as investments. And where people go wrong with investments is that they think of them as collectibles.

Remember the California raisins? (See video below)

The California raisins were little action figures that were used to promote the California raisin industry. They became a pop sensation and people started collecting them. Which was fine…as long as they collected them for the joy of collecting them. But…

But if they thought they would be a great investment, they would have been better off throwing the California raisin figurines in the toy box and investing in a share of Microsoft stock for around 28.00 (1986). It would be worth approximately 260.00 today plus dividends.

However, let’s not forget the California raisins…

If they are collectibles, something that reminds you of your children when they were young or happier and simpler days, or you just enjoy collecting them…then they are priceless.

They’re a terrible investment but a priceless treasure.

So which is it?

That’s the question you must ask about everything that you place a value on–your marriage, your friendships, your job, your health, your car, house, or bank account…are they priceless treasures (collectibles) or are they just an investment?

The way you answer that question determines how you handle anything of value.

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