SECRET LAIRS ARE GOOD INVESTMENTS

Summary

Rudy from Alpha Investments offers his nuanced take on Magic: The Gathering's Secret Lair products. While he’s never been fond of them, citing issues with overwhelming releases and confusion in tracking purchases, he acknowledges their market success over time. Despite his personal dislike, Rudy recognizes that limited print runs and higher rarity in 2024 could make Secret Lairs a solid investment opportunity. He advises diversification, as the market for collectibles is cyclical, and while some products will underperform, others could see significant gains. For those willing to take the risk, investing in Secret Lairs may prove profitable over the long term.

Takeaways

• 😀 Rudy has been critical of Secret Lairs since their inception, viewing them as a poor business decision and a poor investment for long-term collectors.
• 😀 Initially, Secret Lairs had a lot of success but eventually faced market saturation, leading to confusion among buyers about which products they had ordered.
• 😀 By 2022-2023, Secret Lairs experienced a significant drop in demand and sell-through rates, prompting Wizards of the Coast to tighten print runs and make them more limited.
• 😀 Despite Rudy's skepticism, the data suggests that 90% of Secret Lairs either maintain or increase in value, making them a relatively successful product overall.
• 😀 The limited editions and tighter print runs in 2024 have increased the chances that Secret Lairs will hold or appreciate in value, making it more favorable for investors.
• 😀 Rudy stresses that the collectible market is cyclical, with no single product category always outperforming others, whether it be Secret Lairs, booster boxes, or collector sets.
• 😀 Diversification is a key investment strategy—investing in a variety of collectibles, like Secret Lairs, collector boxes, and singles, can mitigate risk and increase overall profitability.
• 😀 Rudy suggests that while individual Secret Lairs may not always perform well, there’s a potential for a few to significantly increase in value, leading to a strong return on investment for collectors.
• 😀 A small-scale investment, like flipping individual Secret Lairs or selling single cards, can still generate a steady income for those actively engaged in the market.
• 😀 Despite his personal disinterest in buying Secret Lairs, Rudy acknowledges the potential for long-term gains due to the scarcity created by tighter print runs and limited editions.

Q & A

What is Rudy's overall opinion on Secret Lair products?

Rudy has a generally negative view of Secret Lair products. He believes they are a poor business decision for Wizards of the Coast and considers them to be a form of 'bubble' that ultimately harms the Magic: The Gathering community by focusing on secondary market cards instead of creating more innovative sets.

Why did Rudy accumulate Secret Lairs during 2019-2021 despite his dislike for them?

During 2019-2021, Rudy accumulated Secret Lairs as part of collection buying, where Secret Lairs happened to be included in larger collections he was purchasing. He wasn’t actively seeking them out but found them as part of other deals.

What problem emerged with Secret Lairs between 2022-2023?

By 2022-2023, the volume of Secret Lairs became overwhelming. Customers often lost track of which Secret Lairs they had ordered due to the high frequency of releases. This confusion led many buyers to scale back their purchases.

What does Rudy think of the new limited printing strategy for Secret Lairs in 2024?

Rudy believes that the limited printing strategy introduced in 2024 could make Secret Lairs more exciting and potentially more profitable for collectors. He acknowledges that this move could drive higher demand and resale value by creating scarcity.

How successful are Secret Lairs in terms of resale value?

Despite Rudy’s dislike for them, Secret Lairs have been quite successful in terms of resale value. Data shows that 90% of Secret Lairs are either holding their original value or increasing in price, with only 10% of them losing value.

Can Secret Lairs be a good investment, according to Rudy?

Yes, Rudy admits that Secret Lairs can be a good investment, particularly with the current trend of limited releases and tighter print runs. He mentions that some Secret Lairs could increase in value over time, especially if they become more rare or sought after.

What is Rudy’s opinion on the performance of different collectible Magic: The Gathering products?

Rudy argues that there is no one-size-fits-all answer for what product will perform the best. He compares it to other investment sectors like stocks, where different assets will outperform at different times. The key is diversification, as no one product will always be the best investment.

What is Rudy’s approach to diversifying Magic: The Gathering collectibles?

Rudy emphasizes diversification, comparing it to investing in stocks or other assets. By investing in a range of products, such as Secret Lairs, booster boxes, and collector boxes, collectors increase their chances of seeing significant returns, as some products will outperform others over time.

What is the current state of the market for sealed booster boxes and collector boxes?

While there was a period of disappointment for collector boxes due to poor management and overproduction, the market has improved by 2024. Some recent sets have performed exceptionally well, demonstrating the cyclical nature of the market where different products have their time to shine.

How does Rudy suggest handling Secret Lairs as part of a larger collection?

Rudy suggests buying into Secret Lairs as part of a diversified approach to Magic: The Gathering collecting. If you have a collection of Secret Lairs, some of them may perform very well over time. For example, if one Secret Lair appreciates significantly, it could cover losses from others.