Up until recently, alternative assets to invest in might have included art, wine or any number of things. Similarly, investment clubs and fractional investing have been part of real estate, the horse world and more. In the last few years the Securities and Exchange Committee has regulated collectibles, including sports cards and memorabilia.
So, what does this mean? Well, it means that you can invest in iconic sports items, just like you would buy shares of stock online. Using sites like collectable.com, you can browse sports cards and memorabilia and buy shares of them, just like stocks. You are buying shares or fractions of the ownership in the item, thus the term fractional asset.
Is this expensive? Like any other investment, you can determine which items and how much you want to invest. If you want one share of the championship belt that Muhammad Ali won after beating George Foreman in the famous “Rumble in the Jungle” fight, it will cost you $13.70 on the collectable.com platform.
The current market cap (total value) of the belt is just under $600,000! The market cap at the time of the IPO (initial public offering) was $428,000. That is a 37 percent gain in just under two years. Anyone can buy and sell shares of this or any other item on collectable.com and other platforms.
OK, enough economics. Let’s discuss what a cool idea this can be for those of us who can’t buy items worth thousands or millions of dollars. I can go online and buy shares of a Johnny Unitas 1965 game-worn jersey for $11 each. Do I get to actually see, hold or keep the jersey? No, of course not, but that’s not the idea. Getting to know that I own a little piece of one of my idols is more than owning a share of a company with which I have no connection.
Of course, just like conventional stocks, not every item will go up in value. This made me wonder which type of items are the most popular. I went straight to the top and asked collectable.com CEO Ezra Levine:
“The iconic, hard-to-replace items have certainly been the most popular and most profitable assets,” Levine wrote in an email. “Think Mantle 1952 Topps, Jackie Robinsons in high grade, Wilt Chamberlains and others, etc. In collectibles, you always want to strive to own the beachfront properties, so to speak — and with fractional, you can own these properties at dollars you can afford.”
Another fractional site, withotis.com, offers cultural collectibles as well as sports cards and memorabilia. You can sort through offerings for an autographed ticket from Kobe Bryant’s last game, Tiger Woods autographed rookie card and dozens of sneaker collections. Hey, maybe sneakers are not my thing, but Unitas certainly is. If you have never heard or understood fractional investing, it is worth browsing. This is certainly not financial advice, but a peek into a growing market.
There is also a very cool local connection. One asset, a 1914 Baltimore News Babe Ruth rookie card, is housed at the Babe Ruth Museum in Baltimore. You can go visit the museum and see the card in a gorgeous display. You can also buy a couple shares. The value of the Ruth rookie card fluctuates between $7 million and $10 million. I could never buy such a card. But at $4.35 a share, I can buy a few shares and enjoy a little bit of that feeling.
Another item with a local connection is a Jimmie Foxx signed game-used bat. Foxx, who was from Sudlersville on the Eastern Shore, is one of baseball’s all-time great hitters. Here is how collectable.com describes the bat:
“A historic and rare offering, this bat was used by all-time great slugger Jimmie Foxx during the 1936-37 seasons in which he clobbered 77 home runs combined with the Boston Red Sox. Signed and containing a unique personal inscription, this bat is one of only 29 Foxx game-used bats known in existence, and believed to be just one of two signed Foxx gamers.”
Fractional assets will always be around, giving you a chance to buy into expensive items at a low price. I enjoy the connections to so many great players and moments. I have learned to really enjoy reading and learning about these items as they become available. Please look online and have some fun like I have. I hope you enjoy it just the same!
Have you had cards since you were a kid and now you want to sell them? Please email any questions to Danny@SportsBalt.com or visit SportsBalt.com
Photo Credit: Kenya Allen/PressBox