Knowledge Bank

In a world with increased information for investors, investors constantly seek new opportunities to maximize their return on investment. LEGO presents itself as a new, nontraditional investment asset type for investors. This paper collects information on approximately 3,300 LEGO sets released from 2000-2023 from brickset.com. From this data, the author performed a regression model and return on investment calculation to determine what aspects contribute to a LEGO set’s ROI and if LEGO can outperform the stock market. This paper finds that while, on average, a LEGO set will not outperform the stock market, an investor with a keen eye and understanding of LEGO may find opportunities to outperform the stock market. For this reason and because LEGO is exposed to risk factors different from traditional investment assets, it is a viable and noteworthy investment option for investors willing to invest in nontraditional investment assets.