I was a child of the early 80’s and I remember growing up with Teenage Mutant Ninja Turtles and G.I. Joe’s covering my bedroom floor. At $2.99 a pop, the average G.I. Joe provided hours of entertainment, usually culminating with my mother yelling at me to put them all away in my toy chest. I am not the only one with such memories, and those that want to relive owning such toys have created a market for toys from our youth.
Does toy speculation have merit as an investment strategy? Keep reading and you will see how my favorite toy from my youth’s value has outperformed the S&P 500 by a staggering amount. I will even give you some tips to help get you started if you decide toy speculation can be a fun and nostalgic way to invest.
Case Study: 1985 G.I. Joe 3 ¾ inch figure – Snake Eyes
G.I. Joe’s from the 80’s are the example I will use for this article, but don’t limit your mind to just these specific toys. Did you have the original Star Wars action figures? Or maybe you played with My Little Pony’s while growing up. Each of these has seen a staggering increase in value over time.
My favorite G.I. Joe from the day was Snake Eyes. Everyone knows he was the most badass G.I. Joe. Back in 1985 they released a 3 ¾ inch toy that often retailed for $2.99. Fast forward 30 years from then and that same Snake Eyes in its box in mint condition is worth $600. Yup, that’s right, $600! That’s close to a 20,000% increase in value in “real” dollars.
In 1985, the S&P 500 sat at 165.37. Today (or when I am writing this) it’s at 1126.48. That’s a 681% increase in about 25 years. That ain’t bad, ain’t bad at all. But, compare that to the 20,000% increase that good ‘ol Snake Eyes has seen, and the S&P hasn’t done jack over the past quarter century.
Yes, I am using one of the most valuable original G.I. Joe’s for this comparison. However, it was possible to anticipate the craze for this toy. After talking with a couple of G.I. Joe enthusiasts, they say they remember 1985 as a year where they were looking all over the place for that Snake Eyes toy, and couldn’t find it. The desire for the toy was rivaled by none other. Then again, they weren’t sold only in obscure hobby shops. You could find them at any toy store, or even some convenient stores. They were just popular.
How to become a Toy Speculator
I know none of us have our own Delorean with a flux capacitor to take us back to an alternate 1985 and snag us a bunch of these toys. But, we do have the future, and a past that we can learn from. Read on to how you can become a toy speculator in 5 easy steps.
- Step 1: Get yourself a big plastic sealable container. This will be your treasure chest 30 years from now. Make it big enough that you can add plenty of toys to it over time, but don’t buy something too large that it takes up half a closet in your already cramped apartment. A waterproof container is essential.
- Step 2: Go buy some toys. That’s right, go to Toys R Us. Bring your child, friends, spouse, etc., spend some money and buy some toys! This is actually a more difficult process than it sounds. Don’t buy crap. Don’t buy a lot of toys. Pick something out that is likely to be timeless and may have a connection to the present day youth. Think about movies that are being released these days. Toy Story toys, Wall-E toys, Iron Man toys, Batman toys, things of that nature will be valuable again once time passes. Be selective and think about what could have value in time. If no one today is buying the Batman Attack Chopper that turns into a Water Ski, complete with Batman’s squirrel sidekick named Toby, odds are no one is going to want it to buy it again in the future.
- Step 3: Place the toys securely in your container. Make sure it’s in a secure position that won’t allow the corners of the packaging to be bent, curled, etc. I failed to mention it earlier, but toys will have the most value in the future if they are in their original packaging and are in mint condition. Possibly wrap them in bubble wrap and scotch tape prior to placing them in the container.
- Step 4: Wait a long time. It’s going to suck having that big box of toys around for a while, following you move after move, going into storage, etc. But, that’s why you were selective with your purchases and only bought one box!
- Step 5: Strike while the iron is hot. When someone offers you what you feel is a reasonable return on your investment (which shouldn’t be too much), you should feel free to unload the goodies you have held onto for years. With so many online tools (message boards, craigslist, eBay, etc.) you shouldn’t have any trouble discovering the value of your toys and ways to sell them.
Give it a shot
Now, toy speculation is not the standard way to invest. However, it can be incredibly rewarding. Additionally, this type of investing can appeal to all sorts of people; the collector; the nostalgic; the anal-retentive. I wouldn’t advise toy speculation being your only means of investing your money today with hopes of big returns tomorrow, but it could be a fun way to diversify your portfolio.
Lastly, think of pulling those toys out 20-30 years from now and showing your kids or your grandkids what was hip in “your” day. There is nothing like seeing the wonder in a kids’ eye when they hold something that is “old” and “retro”. That is a cool experience I hope to have some day.
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Brian says
Oh Mike! I don’t know what to do with you. You are probably sitting on a gold mine over there buddy. The Star Wars nuts (as i am sure you know) are the perfect example of people willing to pay a premium for toys! Just check out this lot of star wars toys that actually SOLD for $3500 on eBay ( http://bit.ly/4DVqjr ). Amazing stuff.
If she ever wants to refurbish the kitchen but feels you guys don’t have the money, give a quick glance at the Star Wars toys (and then be prepared to run away from flying dishes)! 🙂
Mike Key says
Well in that case, I might already be investing. I didn’t even think about this, but here in my office I am surrounded by my wife’s star wars memorabilia. One item in particular is a set of action figures that are actually my brothers from the 70’s that might be worth something even now. But there would be no profit because my wife would quickly murder me, lol. She’s a Star Wars nut.
Mike Key says
I don’t know if I’d label this as solid financial advice. The problem here is that this is speculation that someone will eventually want these toys.
Lets revisit the past INVEST IN TOYS and you’ll be rich idea: BEANIE BABIES, people invested millions in these, and what happened. Who the hell wants or collects Beanie Babies today? 2 people?
I don’t want to bash this, because the article is good, and Brian you have good writing talent.
But there are safer ways to invest your money. I just had my friend call me yesterday and tell me he had this machine that shorts pennies from prior to 1984 because the copper is worth 2.2 cents. He goes and gets 5 gallon buckets of pennies to sort. And while he’s explaining this I’m just thinking, there are easier ways to make money.
And this thread just reminded me of what he was trying to convince me was a solid investment yesterday.
Well it work, heh, probably, maybe. Is investing in toys really worth the effort/time in the hopes for a big payout. Probably not.
But my opinion. I could be wrong. If I am, please correct my thinking.
Brian says
Mike. I dig the feedback. I think in large part that this shouldn’t be taken as sound advice, but as an interesting opportunity to make some money and to be nostalgic with today’s current toys. Whatever your kids (or friends’ kids) like these days, will likely appreciate in value a few decades from now when they want to remember things from their youth. Beanie Babies were a huge hit and a big flop at the same time.
I think this could be a fun way to invest. Would i sink thousands or a major part of my portfolio into toys? Probably not. But what i would consider, is buying an item or two (i’m a batman fan, so think of some toy from the most recent movie) that i think is cool, and just hold onto it for a bit. Maybe it picks up value, maybe it doesn’t. Either way, they are toys… and they are there to have fun with!
Your friend’s example is a good one. That certainly isn’t something i would do to make money. But, toy speculation (on a small scale) might be something i would consider doing. Maybe i could convince the girlfriend that all my toys had value beyond intrinsic. Thanks for the feedback!
Craig A Gonzales says
Hilarious post! Good job.
CG
Brian says
It is an awesome figure isn’t it? Glad someone else remembers the 85 Snake Eyes like i do. Those trains are for sure money makers as those are collectibles and have an antique flair to them that a lot of people really enjoy. More power to him if he is slowly selling them.
BTW, congrats again Jeff!
Jeff Rose says
Dude, I love G.I. Joe and Snake Eyes, specifically the ’85 one, is my favorite toy of all time. I’m not in my 30’s and loved when they came out with the 25th anniversary figures. I went out and bought two of them. Why two? Not sure, but felt compelled to do so.
My step-father has been a huge collector of Lionel trains for years and has made very good money on it. The biggest problem has been the storage: pain in the butt. But he likes trains so it’s worth it to him.
FFB says
One big problem with this. Back in the day toys were produced to be played with. If one was more in demand then so be it. But more and more collectors started to get into the game. As a result more toys were created for the collector market and not for playing with. I don’t think you will see the same mark-up on toys as you saw from those GI Joes anymore. Part of what makes the toys valuable is that no one can find them anymore. When collectors are holding onto them the demand declines as they aren’t as rare.
It’s possible this could still happen with some toys but I think the time for this kind of investment has passed (unless you have that DeLorean).
Not to mention you are creating 20-30 years of clutter storing these toys in the hope they provide a return.
Brian says
Well i think you are right. We won’t see that astronomical 20,000% increase over 25 years like my one example. However, if you buy a toy that typically gets played with these days for $7 and in 10 years you can sell it for $40, that is still a healthy return on the investment.
One box of clutter isn’t too terrible. The key is not to go overboard.
Alexandre Guertin says
Cool way to invest! Got rid of a lot of old toys and I was surprised to see some of them totally worthless but some of them, like 3D puzzles (even with missing pieces), going for more than I had paid for!
Brian says
It is interesting to see what people will pay money for, isn’t it?
Brian says
Oh, i would post an ad in Craigslist in every major city on the globe! That is a fair question, but maybe it doesn’t make sense to but out the entire stock of a specific item. Part of this is about having the toys for yourself as well. Thats why i like the “one box” approach, instead of buying up enough inventory to store in a warehouse. No need to have your own “back room” of toys, a la “Toys R Us”.
Jeff Kosola says
Very cool way to “invest”. I like the out of the box (or in the box) thinking you’ve showed us. I just couldn’t get the 40 Year Old virgin out of my head after reading parts of it.
I look forward to some really creative post from you Brian. Great job.
Brian says
Yeah, 40 year old is probably the most mainstream example of this. Every once in a while you will see people going to garage sales to pick up old toys to resell for a premium on eBay. It happens, and those people make a killing!
Tyler Tervooren says
I love it! But no one should get any false impressions about how incredibly speculative this is. My poor grandma thought she was funding her retirement with all the beanie babies she bought years ago.
Maybe they just need more time, but she doesn’t have all that much and I can tell you – it’s uncomfortable to hear her talk about all the money she wasted.
But she’s got lots of fuzzy little friends! Maybe I’ll be inheriting a gold mine.
Brian says
Oh the Beanie Babies are a good example as well. There are some that are worth bank today, but a lot of ones that were sold for a premium as they were growing in value are now worth only a few dollars more today than they retailed for a decade ago.
Maybe one thing to point out that Toy Speculation doesn’t necessarily need the “buy and hold” philosophy. You can buy a few things, and flip them a month or two later for a healthy profit. The challenge is to know whats going to be hot.