The Art of the Long Term Hold
We have all been in that situation where we got our hands on a hot book straight from the local comic shop or freshly arrived in the mail and flipped it sooner than you can say “Weedlejuice, weedlejuice, weedlejuice” (if you know, then you know 🙂 ). But what about those books that may not come in burning hot or that you believe are loaded with future potential? Here are some helpful tips that will ease your fears and boost your confidence when holding a long term investment in your collection.
Tip #1 – Patience is a virtue
What one factor does every comic book investor/collector need when dealing with a long-term hold? In my opinion, that well-needed factor is patience. I have seen too many investors get a long-term hold book (i.e. Aquaman, Wonder Woman, Venom, Sandman possibly) and at the 3 – 4 month mark of holding the book, they try to unload it on the marketplace. Although this sounds very basic, it is a skill that comes from experience and knowing how to read the market. This is really more of a reminder than a tip.
Tip #2 – Get rid of the losses…
The main strategy for a comic book investor is to make profit by selling his appreciated comic books. Anytime an investor can make money, it is a win. But for many investors, they hold onto comic books that have declined in the hopes for a rebound. If an investor doesn't know when it is time to let go of a hopeless speculation, they can see the comic book value sink to the point of almost being worthless or having a negative return.
Our very own community member John Brown suggested a comic book that serves as a prime example of a loss. This book according to GoCollect data has been decreasing in value in big numbers.
Daredevil 168 – 1st Appearance of Elektra
Daredevil has always been a bit of an outlier in the comic book world – unless you are talking about Daredevil #1, which has remained strong in the investor market. Even with a movie featuring a well known actor in Ben Affleck and a successful Netflix show, this comic book series has never really taken off. If you held onto any copious amounts of this book, it is probably a pretty sobering feeling. You should unload these as soon as possible unless you have a 9.8 – it should be noted that books in this range follow their own set of rules, regardless of whether the book is worthy or not (but that’s an article for another day). This is a perfect example of getting rid of the losses. Unless you can find this in the 9.8 range, the downfall in most other grades coupled with a less-than-super-excited fan base should make people get off the Daredevil train.
Tip #3 – …but let the winners ride.
Here is a book that in my mind is a long term hold but will always sell if you need the cash flow.
Amazing Spider-Man 300 – 1st Venom
This book is the 1st appearance of Venom and it is the #2 book in market trends on GoCollect. For raw copies, anytime this book is under $100 in the 9.4 – 9.8 range, it should be an automatic buy. If you ever need money for any type of situation, this book would be one of the ones to use for a liquidation fund.
I think this book will always be a long term hold in the comic book collecting world. This is one of the most iconic and replicated covers of the past.
Tip #4 – Pick a strategy and stick with it
Different people use different methods to pick investments and fulfill investing goals. There are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it. An investor who flounders between different comic book investing strategies will probably experience the worst, rather than the best, of each.
Tip #5 – Focus on the future
When it comes to reference data in the comic book world, this one chart is a virtual timeline of when and how long your long term holds should be in your possession.
This graph is supplied by Comic Alliance and it shows all the movies that have been announced in the near future. For example, if loading up on Shazam, this graph indicates that the movie is set to premiere April 5, 2019 (3.5 years away) and this should be the timeline on which you should hold your Shazam books . Of course, the comic book collecting world could change vastly in those years. I think using this as a great reference point, along with the knowledge of investing, could make a lot of people a lot of money. Like the old saying goes “no risk, no reward” when it comes to long term comic book holds.