Segment books to help you develop your own comic book investment portfolio. It achieves your goals while limiting your downside. Let's take a look at a few of those different segments.
Blue Chip Books
A blue chip stock is one that has a long-standing reputation and solid financial sheets. Ideally, these types of stocks have a good yield, meaning they pay a nice dividend to their shareholders year after year. These types of stocks traditionally hold their value with long-term upside potential.
When comparing the comic book market, the books that have a long history of holding and increasing in value without huge swings in either direction are the Golden Age and Silver Age key books. Think of books like Amazing Fantasy #15 and even books like Detective Comics #27 or Action Comics #1 for those that can afford it.
These books have gone up in value year after year after year. Essentially, they are always paying you a dividend to hold them (unrealized unless you sell, of course). Depending on your age and your overall goal with your collection, you might want these types of books to account for around 40-60% of your overall collection value.
Growth Segment
When it comes to the stock market, growth stocks are typically stocks that have high upside potential. However, they don't offer a great (if any) dividend like the value stocks that I mentioned. As of late, you can think of companies like Apple and Tesla when it comes to growth stocks that have seen tremendous upside.
The S&P 500, as an index, is typically filled with these types of growth-oriented stocks. The Dow Jones Industrial Average (DJIA) is geared toward blue chip value stocks that pay a dividend.
When you think of the growth segment in the comic book market, I would look at the Bronze Age key books and even 1980's key books. Consider books like Incredible Hulk #181 and Amazing Spider-Man #129. These are key books that everyone has known about for a long time but they have really started to take off over the past 10-15 years or so. You could literally focus your entire collection here, just like many investors can invest solely in the S&P 500 and be ok over the long haul. If, however, you are looking to diversify your comic book portfolio and limit your risk while maximizing gains, I would look at holding 30-50% of your overall collection value in this segment.
Speculation
Here's where it gets fun. When it comes to traditional investments, you might look at gold and oil as commodities that can help hedge against inflation and other economic risks. The downside is that these types of investments can have a tremendous loss in any given year. When it comes to investing in comic books, I look at speculation books in the modern age in the same way.
If you are investing in these books, you could hit a home run, but you could also lose money. While there is no guarantee that AF #15 and Hulk #181 won't come crashing down, history says it's unlikely. This segment, like the commodities market, can be the most dangerous but also the most exciting! I would say that you want to limit your exposure here to 10-20% of your overall comic book collection value.
Ultimately, you know what you like collecting and you should have fun building your collection. As with any financial investment, it helps to have data and strategy before pulling the trigger on that next book. Until then, I hope this information is educational and entertaining!
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