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When I first heard that sports cards are "an investible asset class" I thought it was pretty dumb.
Fast forward to today & I now own a tiny slice of a $1.8 mil Lebron rookie.
Here's why big money is about to pour into sports cards & card related start-ups in the coming years
Fast forward to today & I now own a tiny slice of a $1.8 mil Lebron rookie.
Here's why big money is about to pour into sports cards & card related start-ups in the coming years
SCARCITY
I collected in the 90's & remember hearing 'save your cards because someday they'll be worth something'.
Update: they're worthless.
All us kids who collected in the 90's were living in what is called the 'Junk Wax Era'. This era was defined by overproduction.
I collected in the 90's & remember hearing 'save your cards because someday they'll be worth something'.
Update: they're worthless.
All us kids who collected in the 90's were living in what is called the 'Junk Wax Era'. This era was defined by overproduction.
SCARCITY (cont)
Card companies learned from the junk wax era that they must manufacture scarcity.
Today mfgs put serial numbers on many cards.
For example, Upper Deck produced only 23 cards like the Lebron rookie that just sold for $1.8m.
Scarcity drives demand & value.
Card companies learned from the junk wax era that they must manufacture scarcity.
Today mfgs put serial numbers on many cards.
For example, Upper Deck produced only 23 cards like the Lebron rookie that just sold for $1.8m.
Scarcity drives demand & value.
MODERN DAY ART
Cards are becoming modern day art.
What do you think a 30 or 40 something w/ a few bucks would rather show his friends?
A 20th century painting from an artist they've likely never heard of
A collection of rare Jordan, Kobe, and Lebron cards
I'll bet cards.
Cards are becoming modern day art.
What do you think a 30 or 40 something w/ a few bucks would rather show his friends?
A 20th century painting from an artist they've likely never heard ofA collection of rare Jordan, Kobe, and Lebron cardsI'll bet cards.
MODERN DAY ART (CONT)
Cards themselves have turned into mini works of art.
- Card stock is better quality
- Autographs & game worn jerseys are a part of some cards
- Cards just plain look cool
Cards are a culture asset well on their way to becoming the art of our generation.
Cards themselves have turned into mini works of art.
- Card stock is better quality
- Autographs & game worn jerseys are a part of some cards
- Cards just plain look cool
Cards are a culture asset well on their way to becoming the art of our generation.
GRADING
There are now multiple companies that grade cards' condition & authenticity.
Grading helps everyone in the market transact by using the same set of criteria.
Standardization (plus knowing you're not buying a fake) helps enable liquidity online and in person.
There are now multiple companies that grade cards' condition & authenticity.
Grading helps everyone in the market transact by using the same set of criteria.
Standardization (plus knowing you're not buying a fake) helps enable liquidity online and in person.
IT'S FUN
As a kid I vividly remember begging my parents to take me to the local card shop. It was so FUN!
People that collected in the 90's now have money & are rediscovering cards.
These 30 & 40 somethings also have kids who collect. Together they both can share a fun hobby.
As a kid I vividly remember begging my parents to take me to the local card shop. It was so FUN!
People that collected in the 90's now have money & are rediscovering cards.
These 30 & 40 somethings also have kids who collect. Together they both can share a fun hobby.
RISE IN CULTURE
Collecting culture is on the rise:
- @garyvee has brought smarts & passion
- DJ @steveaoki opened a shop
- @BillSimmons collects w/ his kids
- @Giannis_An34 collects his own stuff
Wait til the biggest names in our culture get into it
https://twitter.com/steveaoki/status/1295289257867665409?s=20
Collecting culture is on the rise:
- @garyvee has brought smarts & passion
- DJ @steveaoki opened a shop
- @BillSimmons collects w/ his kids
- @Giannis_An34 collects his own stuff
Wait til the biggest names in our culture get into it
https://twitter.com/steveaoki/status/1295289257867665409?s=20
PASSION
The energy in the sports card space in INSANE!
The National is the annual convention and they broke an attendance record in 2019.
There are loads of 'breakers' who open packs on YouTube and rack up tons of views.
Countless examples of pure passion for the hobby.
The energy in the sports card space in INSANE!
The National is the annual convention and they broke an attendance record in 2019.
There are loads of 'breakers' who open packs on YouTube and rack up tons of views.
Countless examples of pure passion for the hobby.
FRACTIONAL OWNERSHIP
Fractional ownership platforms like @OnRallyRd, @CollectableApp, & @withotis are on absolute fire.
Not unlike DFS, giving people a low dollar way to speculate & bet on their favorite players and sports in general is resonating.
Fractional ownership platforms like @OnRallyRd, @CollectableApp, & @withotis are on absolute fire.
Not unlike DFS, giving people a low dollar way to speculate & bet on their favorite players and sports in general is resonating.
SNEAKER KIDS & PASSION ECONOMY
Gary V predicted many of the sneaker kids & sneaker flippers will migrate into cards.
The excellent @ljin18 might dub this a 'passion economy' business.
Making money from something you're into is something almost everyone now aspires to do.
Gary V predicted many of the sneaker kids & sneaker flippers will migrate into cards.
The excellent @ljin18 might dub this a 'passion economy' business.
Making money from something you're into is something almost everyone now aspires to do.
EVERYTHING IS FINTECH
Somebody will build the Coinbase of trading cards (i.e. a frictionless space to buy/sell/store/insure these physical assets).
The company that does that will be huge and will bring another big wave of interest into cards and collecting.
Somebody will build the Coinbase of trading cards (i.e. a frictionless space to buy/sell/store/insure these physical assets).
The company that does that will be huge and will bring another big wave of interest into cards and collecting.
DEATH OF 60/40 PORTFOLIO
With rates at near zero investors are searching for yield.
This search leads to alternative assets like venture capital, private equity & collectibles.
More capital will flow to cards: it's part entertainment, part investing, & part entrepreneurship.
With rates at near zero investors are searching for yield.
This search leads to alternative assets like venture capital, private equity & collectibles.
More capital will flow to cards: it's part entertainment, part investing, & part entrepreneurship.
INSTITUTIONAL CAPITAL
This is still a nascent market filled w/ hobbyists.
But like it or not this hobby is turning into big business. Big biz attracts investors/speculators/builders.
More capital will likely professionalize the space & elevate the value of the scarce cards.
This is still a nascent market filled w/ hobbyists.
But like it or not this hobby is turning into big business. Big biz attracts investors/speculators/builders.
More capital will likely professionalize the space & elevate the value of the scarce cards.
RECAP
We've got a booming industry w/ passionate users that is about to enter the mainstream cultural conversation while attracting lots of capital. Buckle up!
A lot of people are going to have a lot of fun in this space (and make a lot of money) in the coming years.
We've got a booming industry w/ passionate users that is about to enter the mainstream cultural conversation while attracting lots of capital. Buckle up!
A lot of people are going to have a lot of fun in this space (and make a lot of money) in the coming years.
OTHER COOL STUFF TO CHECK OUT
- @samrega CNBC feature on cards w/ @natsturner & @LeoreAvidar
- @myfirstmilpod episode with @_jacksmith
- @garyvee has loads of good content
- $CLCT going private (they own PSA) https://twitter.com/samrega/status/1338605682912862209?s=20
- @samrega CNBC feature on cards w/ @natsturner & @LeoreAvidar
- @myfirstmilpod episode with @_jacksmith
- @garyvee has loads of good content
- $CLCT going private (they own PSA) https://twitter.com/samrega/status/1338605682912862209?s=20
