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Comic Book Cash, Issue #009 -- Why Collectors Make Lousy Investors!
November 03, 2014

Comic Book Cash #9

Why Collectors Make Lousy Comic Book Investors

Welcome to the latest Comic Book Cash instalment, and thanks for subscribing.

This time, we're going to ruffle a few feathers! This is a topic that ought to be dear to the hearts of investors, but has the potential to upset collectors.

Why Collectors Always Do Things Front-to-Back (and Why Investors Should Therefore Work Back-to-Front)

If you're in comic book investing to make money – and why else, when you stop to think about it? – then you need to shake off your instinct to fill long boxes with comic books, and your basement/ attic/ office/ spare bedroom with long boxes!

We're going to examine how collectors do everything wrong, and why it's so hard for them to switch to the investor mindset.

Time to Break Your Collecting Habit

Here is what a typical collector does:

Buy a bit of everything, usually 'front-to-back' (more affordable, recent issues first and older ones later)

Fix on a topic or a series they like (say, Fantastic Four) rather than looking for opportunities to invest their money for the best return

Start randomly adding issues to their collection, either on eBay, at a local comic book store, or at a convention

Push the boat out for a 'special' issue, such as FF #100, #112, or #50 – this becomes the 'jewel of their collection'

Spend the rest of their money on middle of the road books from the series, in whatever condition they can find/afford

Lust forever after the 'unaffordable' keys like FF #1, #5, #12, #48

Will that Fantastic Four #1 ever be affordable if you keep filling long boxes with cheaper books?

Compare that with what a comic book investor should be doing:

Start with the keys! This usually means working 'back-to-front', by investing in the earliest, most expensive issues first

Focus on the issues which have a track record of good percentage returns

Invest in the best examples you can afford to maximize your return when you sell

The 'jewels of your portfolio' are the ones which give you the best return on investment, regardless of their age, topic or condition

Stating the Bleeding Obvious?

As we English are fond of saying, this may sound like the "bleeding obvious", but collectors who become investors are always leery of breaking their habit to own lots and lots of books.

I had a conversation with an older gentleman the other day. He wants to leave an inheritance for his children, so he's been buying stuff like ASM 10-30, Avengers 20-40 etc.

I pointed out that his best move would be to sell it all and just buy one key issue. We're going to buy his comic books from him, and help him to wisely invest the proceeds, with an eye on long-term return.

Doing the Math on 'Unaffordable' Keys

Just quickly... If you hadn't spent $10 on that FF#78 in mid-grade, and the $25 on that FF#38 in low grade, and on and on and on through the collection you're so proud of -- not to mention the money spent on long boxes and bags and boards to house it all -- you might have, what? $1,000, or $1,500, to spend on some of our picks below.

You now have a pretty fair run of Fantastic Four, but are no closer to owning an 'unaffordable' #1, or a #5, or a #12, or a #48. In fact, you could have sat on your hands and now be the proud owner of one of those key issues!

Buying key issues like AF #15 or ASM #1 is a great investment. Those books may very well have increased by ten or 20 percent by the time you have filled in the rest of the run from #1 to #10. I kid you not.

Amazing Fantasy #15 might just be the best investment you ever make

We know of at least one collector who bought AF #15 and ASM #1 before working forwards to complete the run. He has (on paper) more than doubled his money on the two key issues in the 18 months since.

The Big Question

Could YOU sell every book you own and invest the cash in a single book?

NO
If not, then you're still a collector at heart.

YES
If so, then you're ready for the next step. (And we may be interested in buying your books – drop us a line with your list.)

Making the Move from Collector to Investor

For those of you still reading, here comes the next big question.

What should you be buying if you wish to make money from your comic books when it's time to sell?

We're going to break this down by budget. In all cases, presume a 50 percent rate of return in the medium term (five years or less).

Be prepared to liquidate your investments early if there is big news (for example, the recent big DC and Marvel movie announcements) if the books you have invested in are directly affected.

A good recent example is Fantastic Four #45, first Inhumans. I bought a CGC 8.0 for $675 a few months ago speculating on the strong Inhumans movie rumors, which have now been confirmed by Marvel. The last sale of an 8.0 was $1,250.

Perhaps greedy people would hang onto theirs for longer, but I'm ready to sell mine for that price now.

TOP FIVE INVESTMENT PICKS FOR FIVE-YEAR RETURN, ACCORDING TO BUDGET

We present the average price from two years ago and compare to the 2014 average. We also supply you with a target price. If the average sale reaches that level, you should strongly consider selling.

Up to $500 to Invest:

Amazing Spider-Man #361: first Carnage. This book has jumped hugely in recent years, as movie rumors refuse to go away. Such a cool character will surely make it to the big screen sooner or later.

Amazing Spider-Man #361: first Carnage

Grade to buy in: CGC 9.8
2012 Average: $130
2014 Average: $202
Target price: $325

Shazam! #1: After long and persistent rumors drove the prices up, the movie was recently confirmed by DC. There are plenty around, so be picky.

Shazam! #1: Billy Batson Movie Finally Confirmed

Grade to buy in: CGC 9.8
2012 Average: $319
2014 Average: $488
Target price: $800

Shazam! #28: first Black Adam. The movie's coming, and an actor has been confirmed for the role of Black Adam. This is his first appearance since the Golden Age, and it's already taking off. Hang on and enjoy the ride.

Shazam! #28: first Black Adam since the Golden Age

Grade to buy in: CGC 9.6
2012 Average: $68
2014 Average: $277
Target price: $650

Ms. Marvel #20: new look. A new look for the female superheroine amounts to little more than sexy thigh-high leather boots and dramatic make-up, but the book is on fire as rumors swirl around her.

Ms. Marvel #20: new look (nice boots)

Grade to buy in: CGC 9.8
2012 Average: $63
2014 Average: $284
Target price: $450

Micronauts #8: first Captain Universe. You knew that, right?! Anyway, it's rocketing due to rumor, and that should be enough for you.

Micronauts #8: first Captain Universe. Who?!

Grade to buy in: CGC 9.8
2012 Average: $64
2014 Average: $205
Target price: $325

Up to $1000 to invest:

Preacher #1: hot hot HOT. The whole series could be the next Walking Dead, which is basically worth certifying in 9.8 from #1-100. Check out #2 as well (first Arseface. I just added that because I've been dying to write "Arseface" in a newsletter).

Up to $2,000 to invest:

X-Men #101: first Phoenix. A Bronze Age key issue that has plentiful supply in the market, but the price continues to be supported by demand. Missing from a surprising number of the collections we're offered.

Over $2,000 to invest:

Incredible Hulk #1: first Hulk (gray skin). This is the new Amazing Fantasy #15, with prices rising across all grades. Entry level for a 0.5 is now approaching $2,000 – $2K for a total dog.

I recommend going as high as you can afford (contact me for specific prices if you find one in a grade and you don't know what to pay).

I'm going to suggest a Fine copy as a great investment. At this level, the book starts to actually look like something with value, rather than a rag slabbed in a CGC holder...

Want to Save Money on eBay Purchases?

As usual, buy what you can afford and enjoy, and you can't lose.

If you'd like to explore ways to save money every month on your eBay purchases, then please Contact Us to discuss. We've done this for several collector/investors, and more are joining us every month. NO COST TO YOU. Get in touch to find out more.

Cheers

Ashley Cotter-Cairns Editor, Sell My Comic Books

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