Popularly known as Mr. Wonderful, Kevin O’Leary has lived up to his nickname,
taking a profit-driven and unsentimental approach to business and his
investments. That’s why some people might question one of his latest interests:
collectibles. O’Leary has invested millions of dollars in watches and sports
memorabilia. These investments might sound less like Wall Street choices and
more like hobbies to people who don’t understand his strategy. However, O’Leary
believes that collectibles are profitable.
Should everyday investors looking to improve theirfinancial
fitness also take the leap and invest in the asset class? The answer might
not be as simple as yes or no. This article walks you through O’Leary’s
investments and the factors to consider before buying collectibles.
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O’Leary isn’t just collecting items for sentimental reasons
Some people invest in collectibles for emotional and psychological reasons. For
Kevin O’Leary, however, these assets are more than just dopamine and comfort
providers; they’re investments that could bring in considerable returns.
Mr. Wonderful has said on multiple occasions that he enjoys collecting
high-value items. In an appearance on the YouTube channel Wrist Enthusiast, for
example, he noted that he loves collecting watches. His collection includes many
luxury pieces such as A. Lange & Söhne, Patek Philippe, Rolex Daytona, Audemars
Piguet, and F.P. Journe.
O’Leary says he buys these brands not just because they align with his personal
style but also because they appreciate. The legendary investor highlighted that
he particularly loves the F.P. Journe collection because it has seen consistent
value increases over the years.
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Mr. Wonderful’s biggest collectibles bet
O’Leary has been an avid collector for decades. However, nothing beats the Kobe
Bryant and Michael Jordan sports card he bought at auction in 2025.
Kevin, along with two other investors, Matt Allen and Paul Warshaw, bought the
card for nearly $13 million, breaking the record for the highest price paid at
auction for a trading card. In an interview with CNBC, O’Leary said that he has
no intention of selling the card. Instead, he plans to incorporate it into an
index, stating that it’s no different than his gold and crypto holdings.
In a separate interview with The Iced Coffee Podcast, Mr. Wonderful argued that
the signed collectible is a unique piece, a feature that almost guarantees its
appreciation. In fact, he noted that the card was already better than the S&P
500, having appreciated to an estimated $17.2 million by the time of the
recording.
Is investing in collectibles a good idea?
For Kevin O’Leary? Yes. The Shark Tank investor already has a comprehensive
investment portfolio, featuring everything from stocks and bonds to real estate.
For him, collectibles such as the Kobe-Jordan sports card provide even more
diversification. Their appeal particularly lies in the fact that they aren’t
tied to the traditional market. As such, they may provide O’Leary with a means
to further spread his risk.
A collectibles investment strategy is also feasible for O’Leary because his vast
net worth gives him the freedom to lock up significant sums of money in illiquid
assets. What’s more, he partners with other expert collectors rather than going
at it alone.
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What to consider before investing in collectibles
O’Leary’s investment strategy works for him, but the situation is a little
different for everyday investors. While you could invest in affordable
collectibles worth a few thousand dollars, it’s worth noting that they carry
unusual risks, such as illiquidity and subjective valuation, as they could be
difficult to sell quickly, and their worth might shift based on trends and
perception. With that in mind, consider the following factors before you invest
in the asset class.
Scarcity and demand
O’Leary has banked heavily on the scarcity of the signed Kobe-Jordan sports
card. As a unique piece, the card’s chances of increasing in value are quite
high. What’s more, there’s a sense of exclusivity that comes with owning
something that rare.
While scarcity might also be a valuable characteristic for everyday investors
looking to get into collectibles, it shouldn’t be the only one. A collectible’s
value lies not just in its rarity but also in its demand. So, look into each
potential collectible’s market. Otherwise, you might end up locking up money
you’d use for other investments.
Condition
The value of collectibles also hinges on their condition. The better an item’s
state, the higher its likelihood of fetching good returns.
Carefully assess each potential collectible’s condition before adding it to your
portfolio. Look for signs of wear and tear such as discoloration and scratches,
and identify any repairs that might affect its value.
Also, review items’ grades and authenticity. For example, if you want to buy
trading cards, request their PSA scale ratings, and invest in options with high
scores.
Transaction costs
A collectible worth $5,000 might cost you more than that amount. Depending on
your chosen asset andication or grading fees, and storage costs. You might also have to pay
auction or marketplace fees when you want to sell. These costs could take a
significant chunk of your eventual profits
To reduce your risk of making losses on collectibles, consider their all-in
costs rather than just their buying price. Then, price the items accordingly
when you decide to sell. For example, if you incur $1,000 in additional costs
for your $5,000 asset, factor in the $1,000 when quoting the item.
Bottom line
Kevin O’Leary has increased his investment in collectibles. While it might be
tempting tostart
investing in this asset class as well, be cautious, especially if you need
or prefer liquid investments. The truth is, some collectibles require a lot of
patience. You may need to wait for their demand to pick up, for authenticity
verification, or for scarcity to grow.
If you want to diversify your portfolio and are comfortable with long-term
investing, collectibles might be worth considering. However, if you’re just
getting started with building your portfolio, investments such as stocks and
index funds may be a better fit.
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Calista Headrick leads our jobs and lifestyle content, writing and editing nearly 600 articles for FinanceBuzz. You can find her sharing thoughts on real estate, travel hacks, smart shopping, and the seemingly always unpredictable job market. She brings firsthand financial experience to her work and is proud that her personal budgeting system has helped her save a six-month emergency fund. In other words, Calista brings real-world know-how into guidance readers can actually use.
