Quote:
Originally Posted by joshuanip
They are absolutely different. The former, regardless prewar or postwar high grade vintage are non income producing alternative assets. They are also illiquid assets, unique in each example similar to real property.
The latter are income producing assets that carry a risk premium (cards cant default or cut your divy) and are based on discounted cashflows of that stock (whether to use the dividend discount model or discounted free cashflow yield remains to be seen). Liquidity is much better as transaction costs are minimal and there is a open marketplace that provides daily liquidity. Also, those stocks are dictated by passive ETF investing and are subject to flow.
I think what you mean is that those investment grade cards are better investments, which I agree, due to the fact that there will always be higher liquidity and demand for that type... but not the same as large cap stocks.
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Think we ultimately agree. I am extremely well versed with investing and recognize the difference between non-income producing assets and income producing assets. I didn't mean for my words to be taken literally. I was making a quick comparison in three sentences and said "sort of equivalent" to underscore that the parallel was meant in spirit.
I read your previous long take in this thread. You clearly know your stuff. What do you have most conviction in be it that player x's cards, or such and such sport's cards from a year or decade etc. are undervalued/overvalued.
I am starting to think that the increased grading, volume and visibility of cards will make a somewhat (but less so over time) inefficient market place, regarding price, become ever more "liquid" and dynamic and reduce the variance between prices. A stock market comparison is apt. I think the internet changes a lot for the hobby for the better. It makes it global and grading facilitates buying/selling/trading and adds trust.
I have zero interesting in cards from the '90s to present and would not cry myself a river if the sky high prices in modern basketball tanked. Some hard lessons wouldn't be bad for novices chasing outsized gains.