Gary Vaynerchuk's Guide to Investing in Sneakers & Other Alt Assets

Gary Vaynerchuk, a prominent entrepreneur and influencer, shares his insights on investing in "alternative" assets, including sneakers, NFTs, sports cards, and comic books. He argues that these categories represent a shift in how younger generations view investing.

Vaynerchuk believes these alternative investments offer opportunities for potential gains, but he cautions against blindly investing without thorough research and understanding.

What are Alternative Investments?

Vaynerchuk explains that alternative investments, or "alt investments," differ from traditional investments like stocks, bonds, or cash. He notes that these alternative spaces are seeing significant growth and are becoming more accessible to the average person.

• Alternative investments fall outside the realm of stocks, bonds, and conventional cash.
• While high-net-worth individuals have traditionally focused on real estate, private equity, or venture capital, Vaynerchuk highlights the growing accessibility of these non-traditional investment avenues.
• He emphasizes the fun and excitement associated with these "alternative" investment spaces.

Examples of Alternative Investments

Vaynerchuk outlines his personal favorites within the realm of alternative investments:

• NFTs
• Sports Cards
• Comic Books
• '80s and '90s Pop Culture Memorabilia (video games, toys, clothing, and other collectible items)
• Sneakers

Investing in Sneakers & Pop Culture

While Vaynerchuk delves into the intricacies of NFTs and sports cards, he suggests the emerging potential of "sneakers" and other pop culture items as alternative investments.

• He observes a growing trend among individuals, particularly those in the 28-45 age group, who are seeking tangible investments, with "sneakers" emerging as a notable example.
• Vaynerchuk speculates that individuals who achieve financial success may choose to invest in pop culture items, such as limited-edition sneakers, instead of traditional assets like real estate.

Investing in NFTs

Vaynerchuk, known for his bullish stance on NFTs, encourages understanding the technology behind these digital assets.

• He believes that NFTs are a worthwhile investment, but warns that a significant portion of current projects may fail or become worthless.
• He draws parallels between the early internet boom and the current NFT landscape, highlighting the potential for both success and failure.
• He stresses the importance of researching individual projects and their creators to identify potential long-term winners.

Investing in Sports Cards

Vaynerchuk, a longtime collector of sports cards, shares his insights on this growing investment space. He highlights the resurgence of sports cards as a collectible and investment category.

• He notes the increasing interest among parents and children, creating a new generation of collectors.
• He emphasizes the importance of focusing on long-term investments in established players and iconic figures, rather than solely chasing short-term trends.
• He advises prospective investors to educate themselves on the nuances of the sports card market, including grading companies, card manufacturers, supply and demand, and the specific sport in question.

Investing in Comic Books, Toys, and Video Games

Vaynerchuk acknowledges his lack of current expertise in investing in comic books, toys, and video games, but his intuition suggests that these categories are poised for growth.

• He highlights the increasing demand for vintage collectibles, particularly among individuals with nostalgia for these items.
• He believes these categories offer an exciting investment potential due to their connection to popular culture.

Pros and Cons of Alternative Investments

Vaynerchuk presents both the potential benefits and drawbacks of alternative investments.

Cons

• Lack of Knowledge: He cautions against investing in anything without a solid understanding of the market and the specific assets involved.
• Fraudulent Activities: He warns of potential scams and fraudulent activities that may arise in unregulated markets.
• Market Volatility: He acknowledges that the popularity and hype surrounding alternative investments can lead to bubbles that may eventually burst.

Pros

• Enjoyment: He stresses the importance of genuine interest and enjoyment as a key driver for investing in these alternative spaces.

What You Should Know Before Going into Alternative Investments

Vaynerchuk outlines three crucial considerations for prospective alternative investors:

Invest in Things You Understand

He emphasizes the importance of understanding the assets and the underlying markets, advising against blindly following hype or influencers.

Invest in Things You Believe in

He recommends investing in assets and projects that resonate with your personal beliefs and convictions.

• He suggests evaluating not only the asset itself but also the individuals or teams behind it.
• He highlights the importance of understanding the leadership, capabilities, and track record of those involved.
• He emphasizes the significance of making informed decisions and taking responsibility for the risks involved.

Don't Invest More Than You Can Afford to Lose

He emphasizes the importance of responsible investment practices and avoiding risky investments that could compromise your financial security.

Takeaways

Vaynerchuk believes that alternative investments reflect a shift in investment attitudes, with younger generations embracing more tangible and engaging assets.

• He encourages individuals to explore these "alternative" investment spaces, while emphasizing the importance of education and understanding.
• He advocates for a balance between risk and reward, emphasizing the importance of enjoying the process of investing.

He encourages further research and exploration, referencing his own podcast, "Props&Drops," for insights into these alternative investment spaces.