A few weeks ago, someone bought a shirt for $7 million.
To be fair, it’s a pretty nice shirt — soft, breathable, colorful.
But how in the world could it be worth millions?
Today, I’ll explain everything…
Including how this story could help you beat the market.
No Ordinary Shirt
Paying $7 million for a shirt seems absurd.
But as you’ve probably guessed by now, there’s a story here.
You see, this shirt has enormous appeal thanks to who it belonged to…
What he did while wearing it…
And his legacy.
One of the Fiercest Competitors to Play the Game
Below is a picture of the item in question:
Recognize it?
It was worn by Kobe Bryant, the legendary shooting guard who spent his 20-year NBA career with the Los Angeles Lakers.
Specifically, it’s from Kobe’s 1996-97 rookie season — which included his preseason debut on Oct. 16, 1996, his regular season debut on Nov. 3, 1996, and his NBA Media Day.
"Debut games are truly one-of-a-kind moments in an athlete's career," said Brahm Wachter, head of modern collectibles at Sotheby's, the auction house. "They mark the nascency of an extraordinary journey, and for iconic athletes like Kobe Bryant, these milestones hold even more significance as they represent a singular moment in time that can never be replicated."
In his regular season debut, Bryant went 0-1 from the field with 0 points, 1 rebound and 1 block in 6 minutes, 22 seconds.
But he soon became one of the fiercest competitors to play the game. The following season, he became an All-Star, and runner-up for Sixth Man of the Year, averaging 15.4 points, 3.1 rebounds, 2.5 assists, and 0.9 steals.
And his legend grew from there.
How To Make $6.88 Million Selling a Shirt
The last time this shirt sold at auction was in 2012, for $115,242.
In other words, in a little more than a decade, its former owner made a profit of about $6.88 million.
Perhaps surprisingly, this isn’t the most expensive game-worn sports jersey of all time. It comes in at number four.
The top three are the $24 million Babe Ruth "called shot" jersey, Michael Jordan's $10.1 million "Last Dance" jersey, and Diego Maradona's $9.3 million "Hand of God" Argentina jersey, from the 1986 FIFA World Cup.
Who’s forking over big bucks like this?
Let’s take a look.
An Alternative to Stocks and Bonds
Most folks invest mainly in stocks, bonds, and ETFs. If they’re adventurous, maybe they’ll add some bitcoin.
But the rich invest differently. According to the Motley Fool, the rich mainly invest in alternative assets — for example, private startups and private real-estate deals like we focus on here at Crowdability, along with “collectibles” like art, watches, and sports memorabilia.
As of 2020, the wealthy held about half of their assets in these alternative investments, and less than a third in stocks. The remainder was in bonds and cash.
Why would they do such a thing?
Three Reasons the Wealthy Invest in Alternatives
For starters, investing in alternative assets provides diversification. So even if the stock market crashes, these assets can keep growing in value.
Furthermore, they offer a hedge against inflation. In inflationary times like we’re in today, that’s a valuable trick.
But perhaps most important of all, they can provide market-beating returns.
For example, over the last twenty-five years, startups have delivered annual returns of fifty-five percent. That’s about ten-times higher than the historical average for stocks.
Meanwhile, according to the Sports Memorabilia Index, the average annual return from sports memorabilia from 2008 to 2021 was fourteen-and-a-half percent. That beats the S&P 500 by a huge margin.
And according to the Motley Fool, over the last decade or so:
- Wine has shot up 127% in value.
- Classic cars have gone up 193%.
- And rare whisky is up an astonishing 478%.
So, how can you get in on the action before these items become so valuable — and for just hundreds of dollars instead of millions?
Investing in Collectibles
Recently, a new type of website has emerged to give ordinary people the ability to invest small amounts of money into everything from fine wine to fine art.
Essentially, just like you can buy a $100 stake in a startup, now you can buy $100 worth of a vintage Bordeaux, a classic piece of art, or sports memorabilia like Kobe’s rookie jersey.
On Public, for example, you can invest in collectibles including rare sneakers, famous artwork, and valuable trading cards.
And on Rally, you can find everything from tickets to Elvis Presley’s last live performance to a 1955 Porsche 356 Speedster to sports memorabilia like a game-used, signed Mickey Mantle jersey from 1960.
You can invest whatever you’re comfortable with — $100 here, $100 there — and when the item sells, you receive your pro rata share of profits.
Before You Dive In
Keep in mind: all the typical caveats about investing apply here.
For example, don’t invest more than you can afford to lose; invest in what you know; and be sure to dip your toe into the water before diving in.
Furthermore, many alternative investments are illiquid. That means they can’t necessarily be converted into cash at the snap of your fingers.
So don’t invest your rent or grocery money into these offerings!
But if you’re looking to invest like the rich — or you’re looking for a very expensive shirt — platforms like Public and Rally are a great place to start.
Happy Investing.
Best Regards,
Founder
Crowdability.com
