Remember Beanie Babies? Of course you do.
But do you also remember that some people viewed them as an investment? Yes, you can find stories of people using their hard-earned money to buy Beanie Babies with the expectation they would increase in value and they’d get rich.
You didn’t fall for this collectible obsession. You saw right through it. (Or maybe you were too young, like me.)
I know a lot of people who bought into another investment craze.....the metaverse.
Only a couple of years ago companies like Microsoft, Disney, Facebook (and many others) spent billions building out a virtual world where we would spend time interacting with brands and shopping.
As with any new craze there were people trying to capitalize on this. One of the most popular ways was buying ‘virtual land’.
Fast forward to 2023 and surprise, surprise, it didn’t catch on. Disney and Microsoft both closed their metaverse divisions as of March 2023. Land speculation in the metaverse worked out much the same way.
Takeaway: not everything that is wildly popular will stick around, and putting your money behind crazes and investment fads is unlikely to turn in to real wealth.
You know what does turn in to real wealth? Creating a sound investment strategy that has worked for decades and different market cycles. I’ve never met someone who regrets doing this.
(Ok so you didn’t invest in Beanie Babies or the metaverse…but what about American Girl Dolls? Pokemon (or other trading) cards? Fidget Spinners? Happy Meal Toys? Tech stocks during late 90's? Pot stocks in late 2010's? This list is endless.)