Quote:
Originally Posted by MVSNYC
The really rare pieces will always hold their value....
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Not true at all. Consider the T206 Doyle selling for $260,000. Purchased Spring 2009 for $329,000. Sold yesterday for $260,000. Loss of $69,000.
However, it was much worse than that. Consider the alternative to spending $329,000 on a card in Spring 2009. The Dow was at 8,200. Now it is at 17,200. $329,000 invested Spring 2009 in the Dow would be $690,000 now. Investment opportunity loss was $361,000. Adding the actual dollar loss of $69,000 means real loss was $430,000 in today's dollars.
But, it gets worse than that. Stocks in the Dow pay dividends averaging about 3% per year. From Spring 2009 to now, dividends would have been about $114,000. Adding this to the investment opportunity loss of $361,000 and the actual dollar loss of $69,000 means real loss was about $544,000.
It actually gets worse still if you consider that the dividends of $114,000 could have been reinvested into the Dow. That's another $20,000.
All told, the "investor" lost an additional $0.5 million on top of the perceived loss of $69,000.