INVESTOR CLAIMS LEGO OUTPERFORMS STOCKS, BONDS, AND GOLD: PROFITS $500K IN 2 YEARS

Matt Case - June 18th, 2024 - 9:31am PDT 

Lego Investor Profits $500K in Two Years by Reselling Coveted Sets

TEANECK, N.J. — Shane O’Farrell, a 35-year-old service engineer from Teaneck, New Jersey, never planned to amass a fortune from Lego. Initially seeking a nostalgic connection to his childhood in Ireland, where he cherished playing with the modest Fort Legoredo set, O’Farrell discovered a lucrative market in buying and reselling Lego sets online.

Two decades after his initial fascination with Fort Legoredo, O’Farrell noticed that the set, originally priced at $85 in 1996, was selling for hundreds of dollars more. This realization sparked his interest in turning Lego into a profitable side venture. Today, that same set commands a price of $2,405.

O’Farrell is part of a growing trend of investors turning to Lego as an investment, drawn by the impressive resale value of the plastic bricks. According to a 2022 study, Lego's resale value has been increasing by 11% annually, outpacing traditional investments like stocks, bonds, and gold.

"I started trying to invest in stocks but found that the 8% annual return wasn't sufficient for my goals," O’Farrell explained. "With Lego, the returns can be significantly higher in a shorter period."

On his YouTube channel, Brick Bucks, O’Farrell shares tips with aspiring Lego investors. He emphasizes the importance of storage space and staying informed about Lego trends and retirements. Monitoring when Lego discontinues a model is crucial for investors like O’Farrell, who recently benefited from the retirement of the “Star Wars” TIE Fighter Pilot helmet model. Originally priced at $60 before its 2021 retirement, the set now sells for $350.

“Investing in Lego is straightforward,” O’Farrell said. “You buy sets, store them, and wait for the price to increase. It’s low-effort.”

Not all Lego collaborations guarantee high resale values, according to O’Farrell. Scarcity often drives up prices, particularly for sets sold exclusively at certain retailers. The demand for individual minifigures, often included in larger sets, can also be lucrative. Recently, thieves targeted California stores, stealing $100,000 worth of these sought-after minifigures.

O’Farrell has noted a rising interest in the minifigures from Lego’s $460 Barad-dûr set, inspired by “Lord of the Rings.” He remains optimistic about the ease of flipping Lego for profit, stressing patience as a key factor.

“You just need to buy the sets, store them, and wait,” he said. “The workload is minimal.”

Another Lego investor and YouTuber, David G., who goes by DG Bricks for privacy, compared the process to managing a wine cellar. “I purchase today’s products and store them, anticipating future buyers,” he told AP. “It’s a waiting game.”