Collectible Investments: Unlocking Value, Volatility, and Returns

Jaromír Hrazdira

Bachelor's thesis

Abstract:

In this bachelor thesis, we will focus on the question of whether investing in collectible cards from the game Magic: The Gathering is a reasonable investment. We will explore the possibility of building a portfolio with high returns through this method and compare this investment to more traditional methods of allocating financial resources, such as buying stocks on the NASDAQ or PX50 exchanges, or purchasing real estate. At the beginning of the thesis, we will introduce the world of investing in collectibles as a whole and answer the question of the source of collectible value. We will then focus on Magic: The Gathering cards and explain how these cards gain value. We will demonstrate how to distinguish between a counterfeit and an original and examine the selection of cards that are considered exceptional in the community. In the practical part, we will present several investment scenarios accompanied by economic and statistical calculations for net present value, cash flow, return on investment (RoI), and internal rate of return (RoR). For the practical section, it will be necessary to use unrealistic estimates of the total number of printed cards, as this information is not readily available in many cases.

Keywords

Collectible Investments, Return on Investment, Magic, The Gathering Cards, Wealth Building, Alternative Investments, Asset Diversification, Investment Strategies, Net Present Value, Market Trends

Language used: English

Date on which the thesis was submitted / produced: 18. 3. 2024

Thesis defence

• Date of defence: 27. 5. 2024
• Supervisor: doc. Ing. Petr Procházka, MSc Ph.D.
• Reader: Jan Kevin Mullen, Ing.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Economics and Management