We’ve all heard the conventional advice that the best investments are those made in the stock market, saving in a 401(k) plan, and buying a home. But younger generations are beginning to tout non-traditional investments, such as buying Birkin bags or other collectibles, as reliable ways to earn extra income.
Influencer and WWE wrestler Logan Paul recently said that it pays to go beyond the normal scope of investing.
“If you’re young, you can spend money and invest in a variety of ways that may make more sense to you than in a traditional conservative environment like the stock market,” he told Fox Business Network’s “Big Money Show” on Tuesday.
Paul has certainly taken an unconventional investment path: He recently put up for auction a rare Pokémon card that he purchased in 2022 for $5.3 million. The former WWE United States Champion actually once wore the card around his neck during matches, saying it was “the rarest card in the world” and “the Holy Grail.” This card is a PSA graded 10-panel Pikachu illustration card, of which there are only a few dozen left in the world. But Paul’s card is the only one to receive a 10/10 rating from the Professional Sports Sanctions Agency (PSA).
Paul said he plans to auction the card in early 2026 and expects it to sell for between $7 million and $12 million, which would bring him about $2 million to $7 million. He also believes collectibles like Pokémon cards have “outperformed” the stock market over the past two decades.
“If you have money, don’t be afraid to take risks, especially if you’re young,” Paul said.
Global wealth management firm AES says collectibles such as wine, manuscripts, classic cars and rare art can bring “reasonable” returns to investors, but they often don’t deliver the same long-term gains as investing in stocks.
According to the AES report, between 1900 and 2012, the nominal annual return on collectibles was 6.4% and the real return was 2.4%.
“While the returns are reasonable, they are well below the long-term returns of investing in the stock market,” AES CEO Sam Instone wrote. However, “that’s not to say these collections aren’t suitable for certain investors.”
Still, Gen Z men have become obsessed with investing in these collectibles, which some believe will beat Nvidia stock and the S&P 500. They may have a point: Pokémon cards have seen the greatest long-term growth in value of any card category. According to the data provided, it has grown by 3,261% over the past 20 years wealthPreston Fore from Card Ladder. Even the one-year investment is up 46%, which is higher than Nvidia’s 35% gain and the S&P 500’s 17% year-to-date gain.