*This article is for information purposes only and does not constitute or intend to constitute investment advice. This article can not be seen as a recommendation to purchase or sell any securities or other financial instruments.*
Lego, a toy company that became a cultural phenomenon, offers more than just fun experiences. Lego investing has skyrocketed in popularity over the past couple of years. Unlike traditional investments like stocks or real estate, anyone can start investing in Lego sets with a small amount of money. It’s viral among young investors. Lego investing even became a primary source of income for some people. Uncanny, but it works. How?
The Lego Group started off as a simple wooden toy manufacturer in Denmark. Over time their toys took the form of bricks. Derived from the Danish phrase leg godt, “play well,” Lego has been conquering children’s hearts for over 90 years. With a surge in popularity in the early 1980s, the Lego Group expanded majorly. They now have 171 official stores scattered among 44 countries worldwide, each being a sort of tourist attraction with beautiful designs reflecting the culture of the country they are located in.
Initially intended for kids, Lego has recently increased their release of content for adults as well. There are now over 55 official Lego sets released with an 18+ rating. These sets are more advanced than standard Lego sets and are intended for adult builders. For many adults, Lego represents a significant part of their childhood. These are primarily 80s, 90s, and some early 2000s kids fond of Legos, who did not give up on their passion to this day. They now how their own disposable income ready to be spent on Lego sets since they do not have to beg their parents for Legos anymore. Although Lego releases fantastic sets, they do not stay on the shelves forever. Lego sets become retired products after 1 to 3 years after their first release, and this is where it gets interesting. After they retire, some of these sets become so valuable that those collector adults spend thousands to get their hands on them. This is where Lego investors come in; to offer those late 90s adults what they seek.
Some retired Lego sets go for as high as $15000. The Lego Millennium Falcon set, initially released in 2007 for $500, is now listed for $5,000 on the secondary market. The return on Lego sets can although range fromanywhere between -50% to +600% annually, so it is not plausible to assume that buying any Lego set will automatically make you rich.
One way to identify potentially valuable sets is to look for limited edition sets with a high level of detail. Limited edition sets, such as the Lego Star Wars Ultimate Collector Series sets, are often highly sought after by collectors and can command massive prices on the secondary market. Similarly, sets with a high level of detail, such as the modular buildings or the Creator 
One crucial factor to consider when investing in Lego sets is their condition. An unopened Lego box is worth much more than the same set but used.
It is also essential to remember that this whole process requires patience. While some sets may appreciate very quickly, most of the sets take years to increase significantly in value. It is a must to wait until the set is retired and sold out at any easy-access retail store. As with any investment, it is essential to have a long-term perspective and not to expect immediate returns.
It’s also good to diversify your portfolio. This means investing in a range of sets rather than in a single or couple of sets. This can help spread the risk and increase the chances of success.
Overall, Lego investing can be a fun and profitable hobby for those willing to invest time and effort. By doing research, choosing the right sets, and taking a long-term perspective, it is possible to make significant returns on Lego investments. It’s also important to remember that Lego investing, like any investment, carries risk.