Basic Investing Guide
Posted: Sat Feb 01, 2025 7:48 pm
NOTICE: This is not financial advice! Express caution when you are in the space of cardboard investing.
Below is a basic investing guide to help new users navigate the world of cardboard investing
Below is a basic investing guide to help new users navigate the world of cardboard investing
- Do The Math - very important to do this first and foremost. While it's easy to acquire product to invest, getting rid of it regardless of the situation is not that easy. Even if you get the item in MSRP and it has doubled the market value, selling your item will come at a cost. Run the numbers and see if you can afford spending the extra dollars and understand not only the cost to store it and keep it safe but ultimately learn what needs to exit our of your investment. Run the math on what it costs to sell the item. Take into account the cost of shipping materials, time and effort to package and ship, fee (ebay, PayPal, etc) and taxes. Try to figure out your net profit once everything is said and done and that might be good metric to see if you can tolerate this space.
- Understand the time requirement - there is a saying in this space "time in the market is more important that any factor" which is very critical to be successful in this space. Due to the low liquidity of the items we keep, it's very important to understand that these items will take a lot of time to appreciate. Waiting and sitting on an item for years is typical. We consider the market movement of first 2 years of the release of a product, item or card as your typical market noise and the item may or may not appreciate in this short period of time. Some will take a minimum of 2-3 years before they appreciate so take careful consideration on how long you will be in this space. If you plan to only be around 2-3 years then it might not be worth your time. Some of us have been around for 5-10 years and have been sitting on product for years.
- Take the emotion out of the equation - letting FOMO or emotions come into play can lead to bad purchases. Just because everyone, including Grandma is falling in line for the hottest product does not mean it will do good later on. There are good, OK and bad picks. The difference between these picks could be a few hundred to a few thousands dollars down the road. Focusing on the fundamentals around a set, card or product will be better way of determining if it's a good pick or not versus just grabbing or buying the "hottest" new thing because ever youtube is talking about it!