As an attorney, I am dumbfounded as to the number one mistake people make when it comes to their investments. I see the same mistake made by teens starting out and multi-millionaires looking to retire. No where do I see this mistake made more than with comic book investors.
Know these important financial investment terms
Two simple questions I ask clients when it comes to their investments (yes comic books are investments) that tells me all I need to know:
- Do you know the main difference between a stockbroker and a certified financial planner (CFP)?
- Do you know what role a fiduciary serves?
If a comic book collector does not know and understand these two answers completely then they are vulnerable to losing all the money they invested in their books. While there are many differences between a stockbroker and a CFP, the main difference that is important to you is the duty of care owed to the client. In THE WOLF OF WALL STREET, Matthew McConaughey played a broker who said his client's money is better off in their pockets than their clients. This is a theme repeated throughout the film. In contrast, a fiduciary is someone who owes a duty to the client that supersedes their own personal and financial interest. Most CFPs I deal with are fiduciaries. Knowing these two answers can help you protect your comics more than any bag, board, or slab.
Your money is better off in my pockets than your investment
Visit any comic shop and ask the owner what is hot and they produce this item:
The Incredible Hulk #181
The owner is doing nothing wrong. You asked them a question and they are trying to sell you a product. Your LCS has a duty similar to a stockbroker in that they are selling a product to you that you want to buy so they can make money. As long as they are being honest and the book is legitimate then they have behaved as they were required. Your problem is how does the LCS know what is right for you? Even if you bought this item below the GoCollect FMV does not mean you made a good purchase.
If your comic book collection is ill did you get a second opinion? (99% Failure)
You have built up what you think is a great collection, but is that enough? Most collectors fail because of their own short-sightedness. Ask yourself have you ever obtained a second opinion on your comic book investment? Remember, your LCS will provide items to buy, but they never investigate you. In the investment community, CFPs exist that owe a duty to you that is superior to all. If they sell investment products and can sell you Item #1 that would pay them a commission of $1000 and Item #2 that would pay them a commission of $5 they would have to sell you Item #2 if it was in YOUR best interest even if they make less because of that sale. That is because of the duty owed to you is to protect you regardless if they profit or not.
The sad thing is that 99% of you are not using an investment planner who owes you the duty when it comes to your comic book collection. In the past, I utilized a comic book investment adviser. He is not there to sell me anything. Instead, he talks to me about my investment goals while he analyzes my collection and funds I have available to spend. He then tells me segments I am over-invested in; what areas I might be more aggressive in; what books I might want to sell now; what books I might want to get graded and hold for the long term; and books I might want to keep an eye one in the future to purchase. This individual has worked with the court before so they could be considered an expert in their field. Having a second pair of eyes lifts my blinders and allows me to get a full picture of my collection and the market. Most millionaires I know have maximized their investments using CFP to advise them, so why do you as a comic book collector not take advantage of this same option?
So what does this mean?
We all tend to be blinded to our own flaws when it comes to our comic book collections. The owner will receive information that they may have missed by retaining a third party who owes the collector a duty to advise them as to how to better protect and manage their investment. The owner then can utilize the information provided at GoCollect to further perfect their comic book investment.
Do let your hubris in trusting just your own personal knowledge of comics stand in your way of maximizing profits. We all have made the mistake of buying the wrong book at the wrong time. Sometimes we need a second opinion. How many of you have heard of people with stacks of these books that they thought they would one day retire on?
Warren Buffet, Carl Icahn, and others use all their tools to eliminate mistakes because even the best of the best need assistance. Why would putting together a great comic book investment be any different?
