My First Million - February 19, 2020

Collecting Culture

The culture of collecting is driven by nostalgia and the allure of owning rare items. Shaan Puri shares an anecdote about Palmer Luckey, the founder of Oculus, who bid $260,000 on a rare Nintendo PlayStation, highlighting the lengths collectors will go to acquire unique pieces 1. Sam Parr adds that nostalgia is big money, with people willing to pay thousands for items like unopened Goosebumps collections or Elon Musk's flamethrower 1. The fascination with collecting is not just about the items themselves but the stories and history they represent, as Sam explains:

I would get people that would fly in from Australia just to touch an old gas pump.

--- Sam Parr

This passion for collecting is reflected in the success of auction houses like Heritage Auctions, which reported $850 million in sales, primarily from coins 2.

   

The Value of Patina

Patina, the wear and tear that items acquire over time, significantly enhances their value in the collecting world. Sam Parr explains that items with patina, like vintage Levi's jeans or old signs, are highly sought after because they carry a piece of history 2. He mentions that even cleaning or restoring these items can diminish their value, as collectors prize the authenticity that patina represents. Sam shares his personal experience:

If it has any of this patina in it, it's really valuable.

--- Sam Parr

This appreciation for patina is evident in niche marketplaces where collectors seek out unique items that tell a story through their aged appearance 2.

   

First Dibs Concept

The concept of 'first dibs' taps into the collector's desire for exclusivity and novelty. Shaan Puri proposes creating a market where people can bid for the first copy of new products, such as albums or books, before they are released 3. This idea capitalizes on the excitement of owning something unique and the potential for these items to become valuable collectibles. Sam Parr supports this notion, emphasizing the growing interest in trends and collectibles, as seen in the success of platforms like MyHeritage Auctions 4. Shaan elaborates:

You sell it today, it comes out in the future, and people would bid like crazy for this first dibs.

--- Shaan Puri

This innovative approach could create new opportunities for collectors and businesses alike, tapping into the ever-present allure of nostalgia and rarity 3.