How much is invested in a card question .

[cbrandtw]

So I keep track of every card in my collection that is in a PSA holder. It's sort of like a portfolio where it shows current market value compared to the price I have invested in it. So here's the question . Hypothetically, when I make a trade for a $2000 card by trading away a card I bought for $500 but currently sells for $2000 does that mean I now have $2000 invested in my new card or do I only have my original $500 investment to account for my new card. Does that make sense? Opinions please

 

[RStadlerASU22]

That's a tough call, but in that example I'd say $500. Basically you just switched what you bought for $500 originally IMO.

Ryan

Sent from my SM-G920V using Freedom Card Board mobile app

 

[kryslarry]

I would say you are even at 2k. You have 2k invested in the new card because you could have sold the original (first one) for the 2k, and had a profit of 1.5k. But with the trade, you now have the original 500 you spent plus the profit you would have had (the 1.5k) if you had sold it for 2k pre trade, invested in the new one now. If you sell the new card, you then are up 1.5k, which is where you would have been if you sold the original. So, the total investment (original investment 500 plus the profit of 1.5k) while holding the new card is 2k post trade, no profit.

 

[smapdi]

I think there are actual accounting principles here. I don't know what you call them, but I'm sure there's names for all these things as far as how you might track "value." But technicalities aside, the answer to your question is pretty much whatever you want it to be. If you are thinking in terms of real dollars invested, you're at $500, because that's all you've actually spent. I you're thinking about "like-kind value" or something, it's $2000. Or it could be $1500, or $0.

 

[swish54_99]

I would say you're only in it $500 because that's what you're in the original card and this one took it's place. If you had kept the original that is now worth 2K, would you say you're invested 2k in it? I wouldn't.

 

[cbrandtw]

I would say you are even at 2k. You have 2k invested in the new card because you could have sold the original (first one) for the 2k, and had a profit of 1.5k. But with the trade, you now have the original 500 you spent plus the profit you would have had (the 1.5k) if you had sold it for 2k pre trade, invested in the new one now. If you sell the new card, you then are up 1.5k, which is where you would have been if you sold the original. So, the total investment (original investment 500 plus the profit of 1.5k) while holding the new card is 2k post trade, no profit.

After reading that I have to ask, Who's on first? Joking aside, I 100% fully understand your reasoning and agree with it in a sense. Every response makes complete sense but when [MENTION=2077]smapdi[/MENTION] wrote "real dollars invested" I'm thinking that made the most sense.

 

[gracecollector]

Redo your spreadsheet.

Column One: Card Name
Column Two: Price Paid (If received in a trade or gift, value is 0)
Column Three: Price Sold (If traded away for other cards or still in possession, value is 0)
Column Four: Current Value (If card is no longer in possession, value is 0)


Investment is: Sum Column Two

Portfolio Value is: Sum Column Four

Profit is: Sum Column Four + Sum Column Three - Sum Column Two



You can do trade transactions in a different color if you want to be able to distinguish. You can also have columns for dates bought and sold.

 

[rexvos]

I look at fully burdened cost. I also use PSA. I do not go by their SMR values for current market value but instead use VCP and completed eBay sales to determine current value. I look at the money I have invested in the card, whether it is price of raw card plus grading fees or the cost of graded card plus shipping I log it into the registry and work off that.

 

[cbrandtw]

I look at fully burdened cost. I also use PSA. I do not go by their SMR values for current market value but instead use VCP and completed eBay sales to determine current value. I look at the money I have invested in the card, whether it is price of raw card plus grading fees or the cost of graded card plus shipping I log it into the registry and work off that.

I use VCP too thus triggering this conversation. When filling out the "Your Price" box it got me thinking all of this. I made up my mind. I like your wording of "fully burdened cost" so I am going to go with that.
[MENTION=1845]gracecollector[/MENTION] Brad, if I did what you suggested with my entire collection and record my ARod collection loses for my wife to see she would probably divorce me, take the kids and the house, I would get depressed, miss a lot of work because of anguish, get fired from my job, pawn my car, become homeless, become deathly ill from malnutrition and then ultimately have to quit collecting cardboard. I'll just keep it simple. I would hate to give up collecting.

 

[gracecollector]

[MENTION=1845]gracecollector[/MENTION] Brad, if I did what you suggested with my entire collection and record my ARod collection loses for my wife to see she would probably divorce me, take the kids and the house, I would get depressed, miss a lot of work because of anguish, get fired from my job, pawn my car, become homeless, become deathly ill from malnutrition and then ultimately have to quit collecting cardboard. I'll just keep it simple. I would hate to give up collecting.

Good answer - and too true! Collect because you love, not because of value. I don't track any of my purchases, although I do have a good recall of what I paid. I don't want to see a total of what I've paid!

 

[David Anthony]

Not even wanting to try to figure this out is why I have dropped/failed accounting four times in three different colleges. Luckily for me, my favorite instructor is teaching accounting on campus for my last term in October. She doesn't fail me no matter what