Interesting Idea: Ownership of Shares in Comicbooks 1 1

[dupont2005]

1 hour ago, rclark123 said:

 But also the argument is, would you read this CGC graded AF 15, probably not? So then I would think, no one would be driving that countache or 1960 Ferrari GTO, in theory?

A part of the cars maintenance probably includes starting the engine and getting the fluids moving here and there. If an odometer reading was disclosed to shareholders an argument could be made a couple hundred miles a year was necessary. That’s enough to sneak in a few cruises, or more likely, a whole lot of promotional/commercial use for the car. Trailering it to events for cash, having it driven on film sets and being positioned in photo shoots. That’s a lucrative business, especially if you have half a dozen classic exotic supercars just collecting dust in the garage.

 

Regardless of how much the car is driven, when you’re dealing with a six or seven figure car, there’s going to be quite a bit of maintenance costs, insurance costs, storage costs. A slabbed Action #1 can sit in my closet for all anyone knows. Would be smart to insure, but not quite as necessary as a car that requires impeccable maintenance records to retain its value. You don’t want it registered PNO, you don’t want registration expiring, registration requires insurance, on a million dollar car? Also, insurance can fluctuate severely based on where the car is stored. I moved 45 minutes away and it has more than doubled for my classic car. Who pays for the maintenance costs of this car, which could be thousands a month? And when a car is fractionally owned by multiple people in varying levels of vestment, who is the car titled to? Who has legal ownership of the car? Is it titled to a trust, and are your shares a legal vestment in the trust? Is there going to be a vote if/when the car sells?

[dupont2005]

Just took my car out for its last drive before I take it apart again, almost wrecked it when pulling back into the too small garage 😂

Stopped about half an inch before hitting this wooden column. Luckily I don’t have any shareholders to consider 

[Buzzetta]

8 hours ago, D84 said:

Another question:  where's the proof that they even have the book?

[thunsicker]

This fails for me on one major fact.  I'm a comic book collector, not a comic book investor.  My investments are in index funds.  My discretionary money goes into comics.  Comics I want to collect.

[D84]

54 minutes ago, thunsicker said:

This fails for me on one major fact.  I'm a comic book collector, not a comic book investor.  My investments are in index funds.  My discretionary money goes into comics.  Comics I want to collect.

Amen!

[Bonthan]

You get your return when they go out of business.

[the blob]

What a terrible idea. On the other hand if someone started a fund that invested in books like an reit for comics, fine. I think they have them for wine. But doing this to have "bragging rights" to a tiny % of an af 15 you can't even hold seems juvenile. And how on earth would anyone enforce their rights? Seems like a ploy to get $50 a pop plus out of a bunch of naive suckers. And possibly illegal if this is viewed as securitizing this asset.

[shadroch]

3 hours ago, thunsicker said:

This fails for me on one major fact.  I'm a comic book collector, not a comic book investor.  My investments are in index funds.  My discretionary money goes into comics.  Comics I want to collect.

My investments go into the best deal I can find. Might be comics, might be stocks, might be art, might be a promising young entrepreneur, might be silver. What works for me may not work for everyone, but I don't invest for everyone

[Krismusic]

16 hours ago, dupont2005 said:

Just took my car out for its last drive before I take it apart again, almost wrecked it when pulling back into the too small garage 😂

Stopped about half an inch before hitting this wooden column. Luckily I don’t have any shareholders to consider 

[the blob]

18 hours ago, shadroch said:

My investments go into the best deal I can find. Might be comics, might be stocks, might be art, might be a promising young entrepreneur, might be silver. What works for me may not work for everyone, but I don't invest for everyone

And I don't see this working out splitting up ownership of a $100k asset a zillion different ways and having no liquid way of recouping your investment. If you and some colleagues want to go in on an AF 15 that's different. I am not against the idea of comics as investment vehicles, so a fund with varying assets makes sense. But the buy in is going to be bigger and not all for one book, unless it's a bet on the best action 1 or tec 27 out there.

[the blob]

I am surprised Vincent zurzulo has not done a comic investment fund, although I suppose there would be conflicts re: his interest in metropolis. The problem with a fund is only accredited investors can invest, otherwise they are subject to tons of sec regulations and costs. I believe you need to make at least $200k to be one, so that knocks a lot of comic types out.

[androolx]

This sort of investment vehicle could possibly be considered a "security" under the laws of many states, and therefore subject to the securities regulations of the states where it is offered for sale.  I wonder if the persons who are offering this great opportunity considered that. 

[Krismusic]

17 minutes ago, Nice Face said:

Anyone remember www.cgcshares.com from 10 years ago?

No?

Exactly.

CGC - canopy growth corp?  

 

what is cgcshares.. nothing is showing up on google either except canopy growth 

[the blob]

30 minutes ago, androolx said:

This sort of investment vehicle could possibly be considered a "security" under the laws of many states, and therefore subject to the securities regulations of the states where it is offered for sale.  I wonder if the persons who are offering this great opportunity considered that. 

According to the website they are following sec regulations by setting each one up as an LLC. There are provisions that allow investment clubs like this. With that said it seems like on a small $100k asset there are going to be a lot of regulatory and transactional costs that eat away at asset value. It costs $ to set up an LLC. And I think there are yearly (quarterly?) Filing requirements. And frankly I am not sure if things get more complicated with out of state participants. Soooo, I agree with the OP that this is an interesting concept, but I think it is a bad investment vehicle for this book. Preliminarily, it looks like they are raising $125k for a $100-110k book, so right off the bat investors are losing 10%+.  And then yearly expenses will cut into any appreciation of the book. Were they raising $5 million to buy an optimal group of big books at the best price they could I would view this very differently. 

[rclark123]

Well this is interesting...

 

[obiedagod]

I had an idea like this a year or two ago, but I thought it would be impractical. 

Darn.

Edited November 17, 2019 by obiedagod

[oakman29]

C'mon now.

[Krismusic]

On 11/16/2019 at 1:15 PM, rclark123 said:

Well this is interesting...

 

that's scary that they already got 20%... 

I mean its sounds like a really nice idea but I don't know there is a lot of grey there and not enough information or regulation of what will happen with the shares etc.. 

[rclark123]

32 minutes ago, Krismusic said:

that's scary that they already got 20%... 

I mean its sounds like a really nice idea but I don't know there is a lot of grey there and not enough information or regulation of what will happen with the shares etc.. 

Yes i am waiting for more details, but the idea of it sounds very interesting, and thats probably what has convinced a alot of those people who have shown interest

[ThothAmon]

Would it surprise anyone to learn that hedge fund money is being invested in comics? As others have said selling shares in a collection with a definite schedule of repayment seems like a reasonable investment to me. I’d be shocked if Vincent Z hadn’t sold to many investors.