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Our article "Good
Investment?", which appeared in the November
2004 issue of the "Automotive Chronicles",
received many comments from praise to shock.
"Why hadn't I heard about this before?" The
answer to that question is simple. Buying stocks and
real estate is popular because stock brokers, investment
advisers and real estate agents make a living off of
people by promoting. Buying stocks and land is usually
too complicated to do by yourself so you look for outside
help and you are willing to allow these people to make
a living by handling the transactions for you. Stocks
and land have been recognized as investments for hundreds
of years so most everyone feels comfortable with these
methods. Few have ever thought of automotive literature
as an investment much less researching
Another question was, "How do land and real estate
compare to literature as an investment?" Land and
real estate increase in value with inflation, in general,
cycling above and below average, with booms and recessions.
Their real investment value is that you can live on
the land, build on it, or grow crops on it while deducting
it from your taxes. Therefore, in the end, it usually
earns a profit. Still, like stocks, the increase in
value is far from as impressive as that of literature.
Joe from New York noted that when we wrote the article
in October 2004 the DOW Jones Industrial Average Index
was at about 10,000 but is now closer to 11,000 and
the all-time high was nearly 12,000 just a few years
ago. His implication was that those highs would make
a difference in our results. At 12,000 the DJI would
have increased 3,329% since 1954. At 10,000 it was at
2,757% so the increase is not significant when compared
to the average brochure increase of 26,475%. If the
DJK were to double from its all-time high of 12,000
to 24,000 it would still only be a 6,757% increase which
is not likely to happen anytime soon and still insignificant
compared to literature. Joe, a long time literature
collector and MAH customer, was also in the stock market.
He was shocked.
"Can literature be sold as easily as stocks?"
Good question. The easiest way to sell a single item
is to put it on eBay, offer it to collector friends
or sell it to a dealer like MAH. While eBay or a friend
may buy a desirable brochure, book, dealer album, etc.,
at retail price, a dealer will usually offer only up
to about 80% maximum on consignment and less for an
outright purchase. Dealers have to make a profit just
like the stock broker and real estate agent. Still,
the profit to the seller is high because literature's
increase in value over stocks is so much higher. The
answer is, "Yes", it can be sold as easy as
stocks if you are an experienced collector. Plan ahead
when you collect for the maximum profit potential in
what you collect and how you are going to sell it. Literature
is an outstanding investment.