Investing in tangible assets has long had its raison to exist and is still very popular today. The roots of tangible assets go back deep into history; precious metals such as gold have been traded for thousands of years.
Investors are always on the lookout for new investment opportunities, and in addition to the classic forms of investment such as shares, real estate, gold or even art, the colourful terminal blocks from Denmark are causing more and more of a stir.
The returns achievable with Lego® sets can more than keep up with established forms of investment. In February 2009, the MSCI World Stock Index had reached its low point of the world financial crisis at around 710 points. If you had invested your money at that time, you would have enjoyed an average return of 11.10% p.a. today (as of April 2022).
In April 2007, the first Lego® Creator Expert Modular Building, the 10182 Café Corner, was released at an RRP of $149.99. If you had invested in this set in 2007, you would have had an annual return of 23.10% up to the present day! Today, the Lego set sells for up to $3,500. This example is not an isolated case, as you will see later on.
Our Lego Investment Study 2024 confirms the attractive return potential of Lego as an asset class. The study analyzed data from Brickfact users who achieved an average annual return of 15.63 %. The study also shows that Lego investments have a low correlation to traditional stock markets and surprisingly low volatility, making them a stable and rewarding alternative.
Lego can also more than prove itself in comparison to gold. The annual return of the popular precious metal was only approx. 6.5% p.a. in the period from 1970 to May 2020.
Who buys Lego® sets?
Lego®'s target group does not only include children. This has become clear at the latest since the Lego Star Wars Ultimate Collector Series or the modulars of the Icons theme. These themed worlds are aimed specifically at adult fans of the danish bricks.
Target group: AFOL
The AFOL community (Adult Fans of Lego®) accounts for a significant share of the company's turnover. Already every tenth euro can be attributed to this target group. In 2021, the Creator Expert theme was in third place among Lego's top-selling theme series. In the previous year, the theme series was not even listed among the first 5 places. This example illustrates the growing importance of the adult target group for Lego.
The target group of adult Lego fans differs from other buyer groups:
- High-income
- Many collectors
- Prefer detailed and large sets
- Often fans for decades
Lego itself continues to meet the demands of AFOLs. For example, a survey conducted by the company in 2006 among the AFOL community showed that adult fans wanted a detailed city made of Lego bricks that they could build themselves. As a result, Lego released the Creator Expert Modular series just one year later.
Other themes are also popular with adult fans. The Lego Ideas theme has the special feature that fans can submit their own set designs. After submitting, the community votes and with a bit of luck, the idea is implemented by Lego (e.g. Lego® Ideas 21318 Tree House).
Collection potential
The example of the Creator Expert Modular Buildings shows that the "collecting factor" is very important in the AFOL community. Those who want to complete their miniature city and have not been there from the beginning buy the missing sets later. This is particularly interesting for Lego® investors, because AFOLs like to spend a few euros more to complete their collection.
Themes like the Architecture series also offer significant potential for collectors. This particular theme stands out due to its intricate details. Famous skylines and landmarks are recreated as Lego miniatures.
For instance, collectors aiming to complete their New York skyline collection will find the United Nations Headquarters indispensable. This set was officially retired at the end of 2015 and has nearly tripled in market value since then.
What makes a Lego® set particularly valuable?
The worthiness of investing in a Lego® set can be evaluated based on multiple factors. Initially, it's crucial to understand that randomly purchasing any set with the intent of investment is often impractical. This process mirrors the analysis of a stock, where various elements are examined before determining if the investment might be profitable.
Theme & Licence
Licensed themes are particularly interesting for Lego® investors. Lego sets from the Harry Potter and Star Wars themes are at the top of the list. Both themes have a huge fan base consisting of people of all ages.
Replicas of film sets are very interesting. The Hogwarts Castle from the Harry Potter films is regularly reissued by Lego and makes the hearts of fans and collectors beat faster. The Lego 4842 Hogwarts Castle was released in 2010 and went on sale at the end of July 2012. After only ½ year, it had already doubled in price. The original RRP was $129,99, the market value climbed to almost $260 during this period. In 2018, Lego released the latest edition of the castle. We have published about detailed Harry Potter investment analysis on this set.
Besides licensed themes, those that appeal to the AFOL community are interesting. The Lego Icons theme and the associated sub-theme world of Modular Buildings are way out in front. Also of interest are sets from the Architecture and Ideas theme. The Modulars sets are characterised as follows:
- Large and detailed
- Fans can build their own miniature city
- Sets can be attached to each other → form a city block
- Sophisticated building techniques
The Modulars have so far invariably risen in value after they disappeared from the market. The first models are now being traded at prices of up to $2,000. Later models of the series also show a decent increase in value. The 10232 Palace Cinema currently has a market value of over $350 and was originally available at an RRP of $139.99.
If you are interested in the price development of Lego sets, you can view thousands of increases in value on the Brickfact website and in the Brickfact app.
Step by Step Guide: View Lego® Price Trends in the Brickfact App
- Download the Brickfact App for iOS or Android here.
- Enter Lego set number or set name
- Get info on sets & view price trends
Minifigures
From an investment point of view, the valuable minifigures included in Lego® sets are another important factor. With regard to the Modular Buildings, these are negligible, as they are usually not produced exclusively for the sets.
In contrast, minifigures from licensed sets are often really worth something! The Star Wars theme serves as a prime example. Especially Battle Pack investments are interesting.
The Imperial Death Trooper minifigure from the Lego Star Wars 75165 Imperial Trooper Battle Pack is on sale for over $20, against an original RRP for the set of $14.99.
First editions
For Lego® investors, the first editions of a set series are particularly interesting. Collectors spend a lot of money on them. The first BrickHeadz model Lego 41490 Superman & Wonder Woman was available in the year of its release at an RRP of $39.99. Today, the set is sold at prices of up to $900.
Lego® models from film scenes
In addition to the Harry Potter and Star Wars themes, there are numerous other Lego® sets that depict scenes from various movies. These sets appeal not only to general Lego enthusiasts but also to aficionados of the specific films or series. This broadens the investment appeal significantly, as fans are more inclined to purchase sets that evoke emotional connections.
The Lego 71006 The Simpsons House had an RRP of $199.99 and has a market value of just under $400 today.
Current movie sets include Lego Ideas 21330 Kevin Alone at Home, the Harry Potter 76405 Hogwarts Express - Collectors Edition or the Lego Creator Expert 10274 Ghostbusters™ ECTO-1 .
Collectibles
For the adult target group, Lego® railways or even ships are interesting. Lego trains always impress with their rapid price increases. This is proven, for example, by the Lego Creator Expert 10219 Maersk train with an original RRP of $119.99, which was released in 2011 and has a current market value of over $600.
If you're interested in this range, check out the still available Lego Harry Potter 76405 Hogwarts Express - Collectors Edition.
Lifetime
Last but not least, the so-called lifetime makes a Lego® set valuable. The shorter this is, the more likely it is that the price will rise quickly. On average, Lego sets retire after about 2 years. This means that the sets are no longer produced and sold by Lego and can only be bought by collectors or investors.
Which Lego® sets should I buy as an investment?
You can find suitable Lego® sets for your investments in the Brickfact App under "Best to invest". We pay attention to the following aspects in our investment tips:
- Popularity in the Lego community
- Exclusive minifigures
- From movies and series
- Availability
- Exclusivity
- Part Out Value
Brickfact Set Analyses
At Brickfact, we frequently release in-depth reviews of Lego® sets, highlighting all critical aspects for Lego investment. These reviews feature intriguing sets still available on the market.
The criteria discussed in the earlier section "What makes a set particularly valuable" and sets currently available (as of July 2024) are also noteworthy for Lego investments. These guidelines can help you assess the investment potential of a Lego set. Naturally, not all criteria need to be met.
The profit is in the purchase
With Lego® investments, it is important to find the right time to buy, otherwise too much capital will be tied up in the long run. Of course, this is not always easy, but there are a few points of reference that should be taken into account. In addition to the right time to buy, the purchase price is also important for the subsequent return. The lower the purchase price, the quicker you can expect a good return.
Date of retirement
For us Lego® investors, the date of retirement is one of the most important factors of all. In the various Lego® theme worlds, this can be forecast approximately on the basis of historical data.
Retirement status in the Brickfact App
The Brickfact app shows you the estimated EOL time. If you wish you can also filter through Lego® End of Life list.
We distinguish between the following EOL statuses:
- Unknown
- Begin of Life
- Middle of Life
- Nearly end of life
- Already EOL
Lego sets with the status "Middle of Life" or "Nearly end of life" are particularly suitable for investment.
Buy Lego® Sets at best prices
The art of being a Lego® investor is to make your purchases within the aforementioned time frames. You shouldn't wait too long, though, because retailers raise prices on popular sets several months before they officially go EOL.
Find Lego® offers in the Brickfact Guide: This is how you save the most money! we show in detail how you can buy Lego sets cheap and lower your purchase price.
The Brickfact App notifies you in real time as soon as there are new Lego deals at best prices!
Store Lego® sets correctly for the best return on investment
Investments should always be looked after carefully. Just as gold is kept in safe deposit boxes, you should also pay attention to a few points with your Lego® investments.
Sealed cartons
For collectors, the condition of the Lego® boxes is extremely important, so they should be in perfect condition. A sealed box is one of the most important criteria of all, so the packaging of the set should definitely be new and unopened.
Stacking
Lego® boxes are best stored on heavy-duty shelves. Small sets, as long as they are light, can be stacked on top of each other and stored on the short side without any problems.
Large, heavy Lego boxes should always be stored on the long side. It is advisable to turn the sets over every few months.
Humidity and temperature
Lego® sets are ideally stored at a room temperature between 14-20°C (57-68°F) and a humidity of 55 to 60%. This prevents the formation of mould or mildew stains.
The perfect Lego® storage
For the best way to store your Leg®o sets and manage your collection, check out the Brickfact guide "10 tips to manage your Lego collection".
When should I sell my Lego® sets?
Just like the time of purchase, the time of sale is also important for Lego investments. This is reached approx. 2-3 years after retirement. After this period, there are often only slight price increases.
The price development of the Lego 10251 Brick Bank shows this as an example. The set has been retired since December 2018 and has stagnated in its increase for 1 year.
Conclusion: Investing in Lego®
In summary, the investment potential of Lego® sets is both substantial and well documented. Historical data shows that certain Lego sets can outperform traditional investments such as stocks and precious metals in terms of annual returns.
The unique characteristics of Lego investments, including their low correlation to traditional markets and relatively low volatility, further enhance their appeal. The growing importance of the Adult Fans of Lego (AFOL) community has contributed to the increasing value of Lego sets, particularly those within popular themes and first editions.
For investors, understanding the factors that contribute to a set's value and timing purchases and sales is critical to maximizing returns. The Brickfact app serves as a valuable resource for identifying promising sets and tracking market trends to ensure informed investment decisions in this niche market.
Why wait? Download the Brickfact App right here and start your first Lego investment today!
Lego® as an investment: FAQ
This FAQ answers the most frequently asked questions about Lego® investments and shows why Lego can be a worthwhile asset class.
Is it profitable to invest in Lego® sets?
Yes, investing in Lego® sets can be very profitable. Studies show that Lego sets can generate average annual returns of up to 15.63%.
How do Lego® returns compare to traditional investments?
Lego® sets can outperform traditional investments. For example, the Lego Creator Expert Modular Building "Café Corner" achieved an annual return of 23.10%.
Who buys Lego® sets?
The target group includes not only children, but also many adult fans, known as AFOLs (Adult Fans of Lego®). This group prefers detailed and large sets and is often prepared to pay higher prices.
What makes a Lego® set particularly valuable?
A Lego® set becomes valuable through its theme, license, exclusivity, included minifigures, first editions and the lifetime of the set. Sets from licensed themes such as Harry Potter and Star Wars are particularly coveted.
How long does it take for a Lego® set to increase in value?
The value of a Lego® set usually increases as soon as it reaches retirement, which is about two years after the set was released. The best time to sell is often 2-3 years after retirement.
How should I store my Lego® sets to maximize their value?
Lego® sets should be stored in sealed boxes, at a temperature of 14-20°C (57-68°F) and a humidity of 55-60%. Large sets should be stored lengthways and turned regularly to avoid damage.
Why are minifigures in Lego® sets important for investors?
Minifigures significantly increase the value of a set. Especially exclusive minifigures from licensed sets, e.g. from the Star Wars theme, are often very valuable.
