“10X in 10 Years!” - THIS Makes More Money Than Stocks, Crypto, & Real Estate…Combined!

In this comprehensive conversation, Jeremy Padawer, a veteran entrepreneur and collectible expert, shares insights on the world of collectibles, from valuation factors and market dynamics to personal stories of triumph and loss. The discussion covers Jeremy's early ventures in domain names, his career in the toy and collectibles industries, lessons from working with wrestling legend Vince McMahon, notable collectible transactions including Pokémon and Squishmallows, experiences with investing and portfolio diversification, and emerging trends involving NFTs, graded memorabilia, and nostalgic pop culture assets.

What Determines the Value of a Collectible?

Jeremy emphasizes that scarcity is the central driver of a collectible's value—without it, the asset loses appeal. He illustrates this with examples like high-grade baseball cards whose value escalated drastically over time due to rarity. Collectibles also benefit from an engaged community and well-managed scarcity, which maintains demand and secondary market price. Beyond scarcity, he notes hype and cultural relevance play roles, but warns against blindly chasing trends and underlines the importance of knowledgeable investing, akin to stock market dynamics.

Early Ventures: Domain Names and the Start of Making Money

Jeremy's entrepreneurial journey began in the mid-1990s through domain name speculation, a niche he capitalized on by acquiring valuable generic domains at low prices. Despite initially leveraging student loans to fund this risky venture—a strategy he does not recommend—he struck gold buying domains like ACT.com, later selling it for a substantial profit. His savvy use of early internet quirks, such as gaming Yahoo's search algorithm through naming conventions, transformed him from broke to successful in under a year. Over time, he amassed hundreds of domains, including jeremy.com, which he purchased for $7,000 and values greatly for its personal and networking significance.

Transition Into the Toy and Collectibles Industry

Despite early internet success, Jeremy sought traditional employment to gain experience working with others and managing teams, leading him to Mattel at age 26. Although his toy industry salary was a fraction of his domain profits, he embraced this shift to build a longer-term career. He later worked at Jax Pacific, heading WWE toy licenses, where he pioneered strategies to revive wrestling collectibles by targeting adult collectors, notably convincing Vince McMahon to support the Classic Superstars line. This specialization helped WWE become a dominant action figure brand, surpassing many others in popularity.

The Rise of Wicked Cool Toys and Pokémon Global Partnership

Jeremy co-founded Wicked Cool Toys in 2012, balancing annual survival with breakthrough products like reviving Cabbage Patch Kids and launching novel items such as Girl Scout activity ovens. In 2016, after successful management of Pokémon licensing at Jax, he pitched a global partnership with Pokémon against billion-dollar companies, winning by offering equity and a personal board seat. This partnership was pivotal and coincided with Pokémon Go's surge, establishing Wicked Cool as a key player and later leading to a private equity acquisition with Alagany Capital, integrating it with Jazwares.

Acquisition and Success with Squishmallows

Spotting an opportunity in Squishmallows, a burgeoning amusement plush brand rapidly gaining traction at Walgreens, Jeremy and his partners acquired it from its original owner. Recognizing the difference in brand-building perspective between amusement operators and traditional toy companies, they invested to scale Squishmallows globally, transforming it into a multibillion-dollar franchise selling hundreds of millions of units. The brand's success demonstrated Jeremy's ability to identify and nurture emergent trends in collectibles and toys.

Lessons and Experiences with Loss

Jeremy has faced significant misses, notably a rapid $60,000 loss invested in a business venture outside his control within three weeks. More personally impactful was the loss of approximately $7-8 million in collectibles during the Pacific Palisades fire. Despite excellent insurance coverage, the fire destroyed nearly everything except items stored in vaults. Jeremy shares this experience to stress the critical importance of proper insurance and regular valuation updates, urging collectors to prioritize safeguarding their valuables for themselves and their loved ones.

Insights Into Collectibles as Investments and Portfolio Diversification

He compares collectibles to stocks, stressing the importance of intimate knowledge of what one invests in to outperform the market. Jeremy advises amateurs to avoid simply chasing popular fads and instead focus on collecting within their passions and expertise. He suggests allocating around 5% of one's portfolio to collectibles, though acknowledges some collectors investing up to 10-15%. Collectibles can serve as effective diversification and potentially yield higher returns than traditional assets, particularly when entering emerging markets early.

Understanding Collectible Markets: From Pokémon to Leuboo's and More

Jeremy reflects on his experience with iconic collectibles like the Ishihara Pokémon card, purchased at $100,000 and appreciating to seven figures in about five years, and the $5 million PSA 10 Illustrator card involving Logan Paul's high-profile purchase. He discusses current trends like Leuboo's—fashionable collectible toys popularized via K-pop celebrities—and admits skepticism over their aesthetic appeal but recognizes their role as both collectibles and fashion statements, reflecting evolving market demands and adult collector engagement.

The Role of Community, Fandom, and Human Psychology

Collecting transcends material ownership, serving as a means of communal connection and expressing fandom. Jeremy notes the adult collector demographic has risen to become the largest consumer segment, fueled partly by social and cultural factors. The thrill of ownership, storytelling, and the tangible connection to beloved franchises heighten emotional value, distinguishing collectibles from other investments. He also touches on how scalability, scarcity, and storytelling underpin the collectibility in diverse areas, including sports cards, pop culture memorabilia, and even "dark history" items linked to infamous figures.

Navigating Authenticity and Grading of Collectibles

Authentication is paramount, especially as counterfeit items proliferate in the collectibles market. Jeremy outlines the importance of third-party grading services like PSA (Professional Sports Authenticator), BGS (Beckett Grading Services), and newer entrants like CGC for various categories. Registries tracking ownership prevent fake claims, though not perfectly. He highlights that top-grade (e.g., PSA 10) collectibles command substantial premiums compared to slightly lower grades, with a typical value curve where the highest grades lead market movement and lower grades follow. Emerging grading in magazines, LPs, and other memorabilia offers new frontiers.

The NFT Phenomenon and Its Future Outlook

Jeremy addresses the rise and fall of NFTs (Non-Fungible Tokens), acknowledging their concept of digital ownership and community but criticizing the oversaturation and dilution of scarcity. The initial crypto punk and Bored Ape projects created real enthusiasm due to limited supply and novelty. However, the explosion of countless NFT projects eroded rarity and market value. He predicts that first-generation NFT collections will retain long-term value, but many subsequent drops will become irrelevant. Utility, community, and authenticity remain key for sustainable digital assets.

Business Philosophy, Advice, and Leadership

Throughout his career, Jeremy has learned crucial business lessons, especially embracing collaboration and leveraging others' expertise instead of individual control. His story reflects resilience through failure, exemplified by the domain name bubble burst and corporate challenges. He also underscores the importance of passion and alignment with personal interests, noting that burnout and missteps often come from pursuing ventures lacking genuine enthusiasm. Jeremy champions practical preparation for asset protection and realistic, disciplined investing mindset.

Personal Stories: Meeting Warren Buffett and Life Lessons

A serendipitous moment placed Jeremy in a Berkshire Hathaway-owned company post private equity acquisition, enabling annual meetings with Warren Buffett—the legendary investor and businessman. He shares admiration for Buffett's accessibility, humility, and grounded wisdom, especially his focus on living in the moment and practical realism. Jeremy's wife even compared him to a young Buffett due to his visionary mindset. These experiences reinforce Jeremy's belief in balancing passion with pragmatism in both business and life.

Emerging Collectible Categories: Electronics, Magazines, LPs, and YouTube Memorabilia

Jeremy has a keen eye for new collectible categories primed for growth, such as first-generation electronics like the Apple 1 computer and original Oculus VR headsets, which he views as undervalued gems with significant long-term upside given historical precedents. He also highlights the nascent grading and collecting of magazines, LP records, and YouTube memorabilia (like diamond play buttons), signaling the broadening definition of collectibles beyond traditional cards and toys. These markets offer high upside with proper curation and community engagement.

Collectible Valuations Influenced by Athlete Scandals and Pop Culture

The discussion covers how athletes' reputations influence the value of related collectibles. Sterling performance often boosts valuations, but controversy can depress prices or create niche markets. Examples include Alex Rodriguez cards, which lag due to steroid associations, versus Barry Bonds' rising card values despite similar scandalous backgrounds. Conversely, icons like Jeter and Griffey maintain strong valuations free from reputational damage, highlighting the nuanced impact of public perception on collectible desirability.

Collecting as a Lifelong Passion and Community Connector

Jeremy's narrative reveals collecting as a lifelong pursuit blending passion, knowledge, and community building. Beyond mere financial returns, collecting fosters social bonds that bridge political, cultural, and demographic divides. He recounts early experiences engaging with enthusiasts online, attending Comic-Con, and connecting over shared fandoms, emphasizing that these intangible benefits are often undervalued compared to monetary appreciation.

The Impact of the Palisades Fire and Importance of Insurance

The devastating Palisades fire destroyed nearly all of Jeremy's collectible inventory, sparing only items in vaults. His foresight in insuring each item individually mitigated financial loss and allowed for resilience. He stresses the importance of routinely updating insurance valuations as collectibles appreciate and encourages others to treat insurance as a fundamental responsibility, not optional.

High-Profile Collectibles and Syndicates

The podcast touches on the rising trend of investment syndicates sharing ownership of multi-million-dollar assets like rare trading cards and artwork, spreading risk among many investors much like mutual funds. Jeremy notes celebrity involvement in high-profile purchases, such as Mark Cuban and Kevin O'Leary acquiring rare basketball cards, and points to fractional ownership platforms enabling broader public participation in these markets.

The Crossover of Collectibles Into Fashion and Lifestyle

Collectibles increasingly intersect with fashion, lifestyle accessories, and pop culture, as seen in the popularity of collectible caps and toys doubling as fashionable items. Jeremy explains how cultural norms around collectibles evolve, transforming utilitarian objects like caps into coveted items with nostalgic and aesthetic value. Communities formed around these items strengthen consumer loyalty and foster ongoing engagement.

Investing and Working With Financial Advisors

Jeremy admits to being a hands-off investor, trusting a long-term financial advisor while managing his portfolio across stocks, real estate, and company investments. Despite recognizing his better returns in collectibles due to specialized knowledge, he advises balancing passion investments with diversified, professionally managed assets to protect wealth and minimize emotional decision-making.

The Long-Term Vision: Targeting 10x Returns Over a Decade

Jeremy shares his investment philosophy focused on long-term, tenfold returns over roughly ten years, applying this to emerging collectible markets and passion assets. He aims to identify the "grail" items within expanding categories, such as first-edition books or historical electronics, before mass consumer awareness spikes. This patient, research-driven approach parallels startup investing and offers a disciplined framework for navigating volatility.

Experiences With Specific Collectibles: Pokémon, Harry Potter, Wrestling, and Feastables

Highlighting some prized possessions, Jeremy discusses his acquisition of ultra-rare Pokémon cards, including seven-figure Ishihara cards and his connection to the Pokémon licensing IP. He showcases a pristine first-edition Harry Potter book, one of only 500 ever printed, and credits its condition and cultural impact for skyrocketing value. His wrestling collectibles include rare magazines featuring Hulk Hogan, aligning with his professional past. He also shares a unique collection of MrBeast's Feastables promotional boxes, illustrating modern collector enthusiasm around influencers.

The Role of Scalpers and Demand Dynamics

Scalpers are a symptom of real demand; they only thrive when genuine interest exists. Jeremy cautions about the complicating impact scalpers have on consumer access and pricing but acknowledges they sometimes help gauge underlying demand. Retailers increasingly implement mechanisms to discourage scalpers to maintain more authentic collector markets.

Influences of Celebrity Endorsements and Cultural Moments

Products linked to celebrities—such as Leuboo toys endorsed by K-pop stars, Logan Paul's high-stakes Pokémon card purchases, or MrBeast's merch—often experience sudden surges due to influencer impact and viral marketing. These endorsements can rapidly expand collectible communities but also risk volatility as fads ebb. Jeremy underscores the importance of sustainable brand and community management for longevity.

Strategies for Navigating New Collectible Categories

Jeremy advises learners to study a category's highest-valued items, understand grading standards, and build deep domain expertise before investing. Applying analogies from established collectible markets helps forecast value trajectories in new sectors. He advocates patience and rejection of crowd mentality to maintain asymmetric information advantages critical for success.

Collectibles, Community, and Culture as Unifying Forces

The discussion concludes with Jeremy's conviction that collecting transcends financial utility, serving as a social and cultural unifier amidst increasing societal polarization. Shared enthusiasm for collectibles fosters meaningful connections beyond political or demographic divisions, delivering community and joy that cannot be replicated by traditional investments alone.