Remember Beanie Babies?
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
- When it pays to break the law at Financial Uproar.
- PK adds his thoughts on the growing Canadian real estate bubble. PK lives in SF bay, which adds a healthy dose of irony.
- ADP pays off one of her last debts. High five!
- Sam proposes an interesting rental property payment scheme whereby renters get a discount for a second rental year.
- iShares forecasts that ETFs and other passive strategies will attract twice as much capital by 2017. Shit, I’m a finance major. Keep paying for active management, people. 😉
- Dan suggests 6 ways for servers to increase their tips. Rule 1: be attractive. Rule 2: don’t be unattractive.
– Crime can pay! I once saved $50 by outrunning campus police. (Not recommended.)
Popular post this week: See just how much it costs to appear on Shark Tank. It’s a lot.