A 2021 report by Forbes found something interesting.

The article focused on crystals and ostrich egg fragments that were discovered at the 105,000-year-old archeological site Ga-Mohana in the South African Kalahari Desert.

The ostrich eggs made perfect sense. This is a very arid place, and humans have been using ostrich eggs as water containers for thousands of years.

The crystals, on the other hand, were curious.

They were not naturally occurring in the area. The humans living in the Ga-Mohana rock formations must have brought them there. Also, they served no obvious purpose for survival.

So why carry them?

The article suggests spiritual or religious significance. The translucent nature of the crystals could have a connection to the life-giving water. Maybe they were used for trading.

Or maybe, just maybe, they were collected and carried for no other reason than they were pretty… and shiny.

Retail Therapy

As long as there have been human beings, there have been collectors.

It’s proven that human brains release “happy chemicals” – dopamine, serotonin, and endorphins – when we acquire new things.

Buying and collecting things can give us a sense of control over our lives, it can give hope for a brighter future, and it can stimulate senses and serve as a distraction from the stress and/or mundanity of everyday life.

I’ve heard compelling arguments that the success of Amazon’s e-commerce platform is largely due to this impulse. After all, of all the things we order online, how many do we actually need?

What’s interesting is that we don’t even have to buy items to experience these happy chemicals… we can simply think about buying something and it does the trick.

According to the Cleveland Clinic, “Anticipating a reward triggers a dopamine surge, so you don’t have to actually spend money to feel like you’ve treated yourself.”

What’s more, the potential size of the item or purchase makes no difference.

Humans get dopamine release when picking up a candy bar at the grocery check-out… as well as when they pick up a brand-new Porsche.

Psychologist Susan Albers, PsyD, says, “Research suggests there’s significant psychological and therapeutic value to shopping — when done in moderation, of course.”

I’ll admit… I’m not immune.

Bat Off the Shoulder

My collectible of choice these days is vintage and pre-war era baseball cards.

It started with checking out 1952 Topps Jackie Robinson and Willie Mays cards (the famous ’52 Mickey Mantle is outside of my price range), and I’ve been down the rabbit hole ever since. I’m a sucker for Americana and the art on the older cards.

The sunset behind Ty Cobb on his 1909 T206 “Bat Off the Shoulder” variant…

The yellow, red, and green backgrounds of the 1933 Goudey George Herman (Babe) Ruths…

The bright red backgrounds behind Robinson in that ’52 Topps and his ’49 Bowman…

Source: Fanatics

I could go on and on…

My wife thinks that “investing” into old pieces of cardboard is silly. I try to explain that these guys transcend the sport. That their DNA is now intertwined with that of America, which will drive long-term demand (and, therefore, value)… especially for highly-graded cards.

But she knows me too well. She calls me a hoarder. I call myself a buy-and-hold investor.

Tomayto, tomahto.

But I’m not alone. There are entire markets for almost any collectible you could think of… cards, cars, comics, coins, watches, wine, art… you name it.

It’s difficult to get a read on the collectibles market, but estimates I’ve seen put it somewhere between $300 and $400 billion and growing.

But, to make money with collectibles, you have to be good at both buying… and selling. That’s why I haven’t actually pulled the trigger on any of the baseball cards. I know I’d never be able to let them go.

Fortunately, there’s another collectible I buy as often as I can. And you should, too.

If You Must Collect Something, Collect Earnings… and Dividends

For some, investing in stocks can feel like giving money away. They see their cash balance fall, replaced with an intangible string of data in their brokerage account. I can’t tell you how many people have told me they don’t have money to invest… but somehow find it for things they don’t need or even really want.

It’s that dopamine kick. For many, it just doesn’t quite hit the same way when buying equities. Most people will still do it, but treat it as a chore, like a child eating his vegetables.

And so, let me offer a mental reframe: A truly great investor understands that he or she is a collector of earnings… and dividends.

Sure, the ticker symbols on your brokerage screen are intangible… but the dividends you receive, and the improving fundamentals, are not.

I’ve adopted this mindset, and it has done wonders.

Anytime I think about splurging on something luxurious, I ask myself… is this a better purchase than more shares of my favorite companies?

When I’m truly honest with myself, the answer is no.

Adopting that mindset might not be fun, or cool, or sexy… but believe me, you will be better for it.

That’s because your most valuable commodity is your time. We all only have so much of it, and it’s running out a little more each day.

Every time you collect more earnings and more dividends; you are increasing your passive income stream. And that means you are bringing more of your time under your control.

Time and freedom.

I value those two things more than any collectible. I’m sure you do as well.

Regards,

Nick Ward
Analyst, Wide Moat Research