Comic book collectors and investors have the tendency to become fans of the hobby. They cheer it on and tend to overlook negative market news. GoCollect readers are a different breed. They realize that ignoring facts will ultimately end up costing them money both as investors and collectors.
The following are some ways investors and collectors can save money at a time when it matters the most. They are based upon what noted financial experts are doing with their investments. They are preparing because money does not grow on trees.
I. Warren Buffett is Playing it Safe
The Man
Many GoCollect readers may not be familiar with investment professionals, but Warren Buffett is a name most will recognize. He has had the ear of many presidents when it came to advice on the economy. A Buffett market move can sway industry leaders to follow his path even if they do not understand the reason behind his decision. He has that much pull in the economic world.
His Moves
Buffett's most recent financial moves have investors scared. Berkshire Hathaway has increased its holdings in short term treasury bills. They now possess more t-bills than even the federal government.
These are very sound investments and Buffett chose them over the potential to earn more in the stock market. He is afraid of a recession and wanted a safe investment to eliminate the risk of loss. Those fears should permeate to comic book investors as well and impact the buying targets of collectors.
Collector/Investor Response
Berkshire had to cut their investment in Apple by almost half. Buffett believed that it was safer to go for treasury bills than keeping his investment in Apple! This should tell comic investors that now is not the time to look to risky books.
Safer books like Incredible Hulk #181 plus a few Silver & Bronze Age Amazing Spider-Man keys may be the way to go. Now is not the time to speculate on risky books. If Buffet finds it acceptable to make a 6-7% return why are comic investors still looking to make more?
Target Book
Amazing Spider-man #38 is a forgotten key comic. A 9.6 has an FMV right now of $2050. This is the last issue with Steve Ditko art. Fans realize the importance of influential artists and comic books. Collectors should also target this book along with larger keys they want when prices start to drop, AND THEY WILL. The reason is a possible recession, something both Warren Buffett and Jamie Dimon are saying is now more likely. Speaking of Dimon.....
II. Jamie Dimon is weary of a Siren
Trendsetter
Jamie Dimon is an American businessman and CEO of JPMorgan Chase. His mere involvement with a company is worth billions. Dimon is not one that is opposed to new things. The investment guru is a big proponent of AI and is positioning his company to ride that wave. He understands new technologies, but that does not mean he must vacate his business philosophy because of FOMO.
Avoiding Successful Investment Trends
Dimon knows of the success of cryptocurrency. He cannot deny it, but he questions the long term viability of those products. The product may make money but he views it as a "Ponzi scheme" that has no inherent value. He is thinking with his mind and not letting emotions get the best of him. The reason is because he trusts his own past successes and the methodology that brought him those rewards. This allows him to avoid the biggest source of heartache in the comic book marketplace.
Collector/Investor Response
But it makes money. It is a sure thing. You missed out on that last one so get this one. FOMO is a pain in the butt. Many an intelligent investor deviates from their past successes out of fear in potential lost revenue. Collectors rush into books out of fear the prices will rise and now is the time to get a deal. Now is not the time to do that.
Dimon is predicting a recession but he still is not jumping on an investment that is said to be a hedge on inflation. Hobbyists should follow his path and stay true to themselves.
Target Book
Star Wars #1 is a Bronze Age key that still resonates with consumers immensely in pop culture to this day. That is sometimes difficult to comprehend. The fact that a 9.6 has an FMV of $875 is mind boggling. Fans may not realize it too, but this book is approaching it's 50 year birthday in a few years. Collectors love Star Wars. Investors target collector's interests. This is sound logic void of FOMO influence.
Collectors and investors should target this book in high grades to take advantage of such an undervalued book. If you can afford the Star Wars #1 $.35 Variant Cover one would be wise to buy it. This book has only 327 total graded copies in existence. A rare key issue with such a low population is the holy grail and a true Dimon-in-the-rough type investment.
III. Ken Griffin, an investment-collector
Unknown Superstar
Ken Griffin is an investment super hero. He is the leader of Citadel, a hedge fund in Florida. Most do not recognize him but he is a player in the investment market. He is a man who has made billions and yet many do not know of his business prowess. They do know of his ability to purchase high end collectibles that makes even the crypto-billionaires tremble in fear.
A True Collector
Rather than seeing the smaller picture he thinks big. He evaluates business opportunities on a macro level. He analyzes things such as bank rates, global trends, and other factors to create a well diversified portfolio. Many investors could have been chosen to fit this bill, but Ken has another side that should be of prime concern for GoCollect readers. Ken is a collector like many reading this article.
Griffin recently purchased a $45 million dollar complete Stegosaurus skeleton. This will be added to his first edition copy of the US Constitution that he paid $43.2 million in 2021. The man believes in preserving historical pieces, art, and other collectibles. He is willing to outbid others for them when the situation warrants it.
Collector/Investor Response
Griffin's investment success provides him the ability to buy the best collectibles he can purchase and not sacrificing quality. He is willing to overpay when the situation calls for it. That rule applies when one is buying a valuable item that is RARE.
One of the key pieces of data that is regularly ignored by collectors on the GoCollect site are the census numbers. Collectors regularly check out the prices but very few search for the population numbers. If one did they would realize that a 9.8 Star Wars #107 with a FMV of $775 is a bargain with only 135 total copies in the grade with a total population of 2,049.
Target Books
War comics are in vogue. Many collectors and investors see these books as ignored and thus purchase any notable artist covers or key issues. One book that flies under the radar is Fightin' Marines #26. This book has the famous Iwo Jima flag image on the cover. No copies exist in the CGC census and yet this issue is a key among collectors. Finding a high grade image of this issue would be a very great find.
Those collectors, and thus investors, that can afford it should also still target the highest grade copy of Our Army at War #83 they can find. The first appearance of Sgt. Rock is still undervalued at that price because this book is relatively hard to find (234 total graded copies!!). These are two books that one might be wise to overpay if they can find them. They are important AND rare.
IV. Well Now What?
Many hobbyists think in a bubble. They view the comic book market as its own entity on to itself and ignore any outside noise and advice. GoCollect readers should avoid this way of thinking. Smarter people who deal with billions of dollars are always re-thinking and re-evaluating how to conduct themselves in the market based upon outside vectors.
Investors who believe comics are ALWAYS a sound investment should look at the GoCollect Collectible Price Index and see the true ebbs and flows of prices. Collectors who shout from the rafters that they despise investors and speculators must realize that buying what they love and overpaying is part of the problem. Why would a person who is an investor not stay in the market and continue to exploit a segment of investments where people are still overpaying for the right to own them. Buffet probably can afford to risk more and yet even he does not believe overpaying is a correct response right now in this economy for things that he believes will drop in value.
Comic book collectors and investors need to follow the path set by the likes of Buffett, Dimon, Griffin and others. The comic book market will be here tomorrow, but that does not mean it will be the same. Collectors and investors must start to re-think their targets and amounts they will pay for them. Many times that means looking for safe deals but sometimes an issue will come up that is once in a lifetime. Hobbyists might learn to do what is right for that scenario. That might mean the smart thing to do is overpay like Griffin. Other times it might be wise to remember that Dimon and Buffett are scared of risk and the best thing to do is to play it safe rather than take a risk. Remember what Kenny taught us...
"You've got to know when to hold 'em
Know when to fold 'em
Know when to walk away
And know when to run"
Kenny Rogers
