As a comic book investor, you want the biggest return for your investment. What if smaller returns over time actually beat short-term speculation returns and losses? This is a value investing hypothesis, read on to learn more!
When it comes to investing in the stock market, most money managers will tell you that consistent returns over time often outpace the ups and downs of more volatile stock prices. What if this investment strategy is true for the comic book investment market as well? I believe it is!
It certainly is a lot of fun to buy a book for cover price, slab it, and see the value soar as a new character is introduced or a particular comic book property is optioned for television or a movie. I will not dispute that. But when it comes to investing your time and money, a value approach might be just what your collection portfolio needs. It can balance out the upswings and downswings of the speculation market.
What is Comic Book Value Investing?
As with value stocks, value books, in my opinion, are the Golden Age, Silver Age, and Bronze Age key books that have held their value for years. Think of the Overstreet Price Guide top value lists where you have seen the same books year after year. The books that you have stared at on your local comic shop walls as you checked your billfold to see whether today was the day you pull the trigger or not. The books you recognize just by catching a glimpse of a cover. I think you get the idea. These value books are key books that have held their value. They have paid dividends to those that have held them over the years.
Is it feasible for your collection to be comprised completely of key value books? For some people, the answer is yes. For most people, these comics will account for 20-80% of their overall collection value. If you own a key golden age book, it could literally be worth 90% of your overall collection. That’s while your speculation books (even if you have hundreds) could only account for 10% of your collection value. You have to think in terms of overall value rather than just the number of books.
Is there a Place for Speculation in Your Collection?
The short answer is absolutely! Doing the research and being the first to find an undervalued book before it takes off is a major part of the fun and what drives the comic book speculation market. There are a ton of reasons to keep speculation a part of your overall strategy. I would just caution anyone that invests their money purely on speculation without understanding the risks involved, as with any investment type.
Should you be using your comic book collection as a part of your overall investment portfolio, be sure to hedge your bets with books that have a long track record of stabilized value. If, on the other hand, you are purely speculating on comic books as a fun hobby or treating it more as a gamble (if I make money, great. If not, no big deal) then I would say the overall strategy is less important than the dollar figure you are allocating to this hobby.
As always, educate yourself and be sure to have fun!