The front page of Yahoo! highlighted an article about a short film entitled Bankrupt by Beanies which introduces the world to a family who became addicted to purchasing Beanie Babies in the mid-1990s. The family went to great extents to purchase as many Beanie Babies as possible and believed the collectibles would eventually appreciate to a point in which they could pay for the children’s education. There are many lessons to learn from Bankrupt for Beanies.
Collecting for Money is a Gamble
If you are collecting items with the intent of selling for more money in the future – you are gambling. In Bankrupt by Beanies, the highlighted family perceived a future value much higher than the current value. They obviously did not perceive how the market might change. We should never assume our collections will pay for future events because nobody can predict all the permutations of a market.
Bankrupt by Beanies and Market Bubbles
Any market can burst. In this case, the Bankrupt by Beanies family did not pay attention to particular signs which point to when a market would burst. This is not necessarily their fault as most collectors don’t pay attention to certain indices such as a constant flood of “special” or “unique” offerings, the emergence of a high number of market speculators, the influx of non-traditional collectors, prices instantly rising on all new releases, and statements from manufacturers on how collectible certain items are. The market bubble burst, and thousands of people were left holding the (bean) bag.
Obsessive Collecting
I am a strong supporter of having goals, and doing what you can to achieve them but there is a line between trying to complete collecting goals, and becoming obsessed with a collection. Bankrupt by Beanies explains how the family in question would recruit neighbors, keep their kids out of school, and go through plans of attack on the days new Beanie Babies came out. This all points to obsessive collecting. When you believe that picking up $5.95 colored bags of beans are more important than your children’s education – there is something wrong.
Non-Traditional Collectors
I never trust markets which focus on non-traditional collectors. You don’t have to watch Bankrupt by Beanies to know that the Beanie Babies market essentially focused on middle-aged women and the elderly. For many of these people, Beanie Babies were the first collectible they ever “invested” in. Items such as Beanie Babies and Llyadro figurines try to drag in people who are naïve to collecting in order to make as much money in as short of an amount of time as possible. We need to be quick to identify these markets and avoid them.
In the End
Bankrupt by Beanies should be a reminder to all collectors to be cognitive of warning signs in the collector’s market. Don’t get burned like this family did.
