Round Up: Beanie Babies Edition

by JT McGee

Remember Beanie Babies?

I do.

These things popped up as the investment of a lifetime when I was growing up. I never got into them – coins were much more interesting to me – but people bought them by the thousands to hold as a collectible store of value. We all know how that turned out.

A mania requires irrational expectations about the future value of an investment. One book published in 1998 projected 2008 values for Beanie Babies. Turns out that they could not have been more incorrect about their $1,000+ projections for some of the hottest Beanie Babies at the time.

If there’s anything I’ve learned from Pawn Stars, it’s that items sold for the purpose of collection rarely have any value years down the line.

Links from the web

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{ 1 comment… read it below or add one }

American Debt Project June 24, 2013 at 12:45

Thanks for the mention! I can’t wait until you do more real estate posts, and I loved Nelson’s Canadian real estate bubble post.

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