The name of the game is diversification. Just like a stock portfolio, you don’t want to invest too heavily into one sector of your sneaker portfolio as a reseller. As basic economics has proved, if you invest too heavily into one sector and it starts to dip in value then you could see a much lower rate of return on a larger percentage of your portfolio.
An example of this in the world of sneakers can be seen with Nike Dunks. In 2020, many resellers invested heavily in Dunks hoping that they would skyrocket in 2021. At the time of writing this story, only a few dunks have really gone up a lot in value. The rest remained stagnant in their prices without much positive gain. Many resellers are eying the market with Air Jordan 1 Mids to see if they will do the same thing.
One factor you’ll want to focus on if you’re a reseller is how long you plan to hold onto your sneakers before selling. Based on that, you can decide on how many pairs of a specific sneaker are right for you to add to your portfolio.
For the sake of this article, quick flips won’t be factored into a sneaker portfolio because that’s the equivalent of day trading. Here today, gone tomorrow. An actual sneaker portfolio will consist of more long-term holds.
The importance of a solid sneaker portfolio is that you get to have a range of different assets that are gaining in value at different rates. If you would have invested in ‘Mocha’ 1s in October 2020 and ‘Fire Red’ 4s in November 2020 then you would’ve gotten the best of both worlds with a solid short-term gainer and a solid long-term gainer.
If you want to invest in more long-term holds than short-term holds then you might find your portfolio reflects that with a larger allocation toward the Fire Red 4s. There was a huge number of these released, it was easy to get multiple pairs, they sat really low on the aftermarket at first, and it’s almost a guarantee that after a year they will be selling for around double of what you paid. It’s a beautiful pair of sneakers that you can double your money with in a year.
However, if you’re looking to buy something and flip it within 3–6 months then sneakers along the lines of ‘Mocha’ Jordan 1s will take up more space in your portfolio. Mocha 1s had a lot of hype around them when they were released and still do because we’ll probably never see another pair of sneakers with a colorway like it be released. Yes, they will continue to go up in value over the years but the initial value they gained in the first 3 months would’ve almost tripled your money.
Most Juiced IO members know what I’m talking about already. They received detailed information about which sneakers were great long-term holds and which wouldn’t do too hot on the aftermarket. From there they could create a sneaker portfolio that matched what they wanted to do with their money. If you’re not already a member of Juiced IO, you’re missing out.
Diversifying your portfolio is simpler than you think. Slight tweaks might be all that you need to see more income in the future.
These tweaks might mean buying more GS sizes instead of just adult sizes of sneakers. In both the previous examples of Fire Red 4s and Mocha 1s, GS sizes are now selling for almost as much as men’s sizes.
Minor tweaks like that will save you more money when you invest and result in a better return when you decide to cash out and sell your pairs.
Looking to start reselling? Sign up now at https://juicedio.com
