TCG Hot Run
Michael Karnjanaprakorn@mikekarnj
+0.8%
since Oct 15
The idea
I believe the trading card boom has a couple more years to run, so I built a concentrated bet around it. I hold equal stakes in Hasbro for Magic: The Gathering, eBay for card resale through its marketplace and TCGplayer, and GameStop for its growing collectibles business, each capped at a quarter of the portfolio so no single name dominates. The rest sits in cash, ready to add to whichever one dips when card prices get choppy. I'd rethink this if card supply catches up with demand or if the speculative energy driving prices cools off.
What it owns
- It makes money on every Magic pack sold, so a hotter card market shows up directly in its profits. · Hasbro, Inc.It owns Magic: The Gathering, which recently hit its highest quarterly sales in over three decades, and belongs in this take as long as Magic maintains that pace.25%
- It takes a fee each time a card changes hands, whichever game is hot. · eBay Inc.It gets a cut every time a card is resold on its main site and through TCGplayer, so it profits when collectors trade more and prices climb.25%
- It has made trading cards a big, growing share of what it sells in stores. · GameStop Corp.Collectibles have grown to represent a substantial and rising portion of its retail sales, including high-value presorted card packs, though its price can move for reasons unrelated to the card market.25%
- Cash25%