Editor: Crass Cash
I recently ran across a few dozen Starting Lineup figurines that I bought when I was probably around 11. Now you would think that 23 years later they'd be worth something, but I would be totally wrong! I initially bought them that long ago as an investment. So here's a lesson in supply and demand, just because it's old doesn't mean it's in short supply. Nor does it mean that somebody will want it.
I originally bought them for $5.99 in 1991 dollars and they have by no means kept up with inflation. How much could I have made if I had put that in the stock market instead? That's the definition of opportunity cost.
So let's say I have 20 of them at $5.99 and I'd be lucky if I could sell them at cost, if at all. So with tax I probably paid around $128 for all of them. Some have actually gone up in value according to the prices on amazon.com and other I probably won't be able to get anything except some shipping profits.
The S&P500 index was trading for $395 in the summer 23 years ago. Now it is trading for $1958.12. Which means that it's gone up almost 4x! That would make my original investment of $128 worth $506! Note this isn't counting the dividends that I would have received the whole time also. You also would have received a compounded amount of $504 for dividends, after taxes!
This post was designed to draw attention to how much useless stuff you buy that has no meaning and no use. Hell it can even be through the guise of an investment, but in the end it costs you a lot more than what you paid for it. Look at every financial transaction that doesn't pertain to the basic necessities of life and see how much it'll cost you in 30 years. You'll be shocked to see how much that new set of golf clubs, new couch, or $2,000 a year smoking habit. That last one will really make you cry!
I originally bought them for $5.99 in 1991 dollars and they have by no means kept up with inflation. How much could I have made if I had put that in the stock market instead? That's the definition of opportunity cost.
So let's say I have 20 of them at $5.99 and I'd be lucky if I could sell them at cost, if at all. So with tax I probably paid around $128 for all of them. Some have actually gone up in value according to the prices on amazon.com and other I probably won't be able to get anything except some shipping profits.
The S&P500 index was trading for $395 in the summer 23 years ago. Now it is trading for $1958.12. Which means that it's gone up almost 4x! That would make my original investment of $128 worth $506! Note this isn't counting the dividends that I would have received the whole time also. You also would have received a compounded amount of $504 for dividends, after taxes!
This post was designed to draw attention to how much useless stuff you buy that has no meaning and no use. Hell it can even be through the guise of an investment, but in the end it costs you a lot more than what you paid for it. Look at every financial transaction that doesn't pertain to the basic necessities of life and see how much it'll cost you in 30 years. You'll be shocked to see how much that new set of golf clubs, new couch, or $2,000 a year smoking habit. That last one will really make you cry!
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