Latest / The Sports Card CEO Podcast / Episode 3, S3: Business Rules For Disciplined Card Buying | Market Trends, Strategy & Discipline

Transcript

Episode 3, S3: Business Rules For Disciplined Card Buying | Market Trends, Strategy & Discipline · The Sports Card CEO Podcast

0:00
[SPEAKER_01]: What has happened, everybody, and welcome to the sports card C-E-O.
0:04
[SPEAKER_01]: This is a little mat and big mat today, and we are diving into some listener questions and some market champ.
0:10
[SPEAKER_01]: Did he get another one?
0:14
[UNKNOWN]: Oh, get him on the side of the way back.
0:18
[SPEAKER_04]: Get him on the side of the way back.
0:22
[SPEAKER_04]: Get him on the side of the way back.
0:24
[SPEAKER_04]: Let's go again.
0:25
[SPEAKER_04]: There it is.
0:25
[SPEAKER_04]: He did it.
0:28
[SPEAKER_04]: a 40-70 season and a season of life in the other and naturely baseball history from one of the Koenia Junior.
0:38
[SPEAKER_03]: There's a drive right on the panel.
0:40
[SPEAKER_03]: Evan, Simon, what a amazing, he is happy.
0:43
[SPEAKER_03]: And he hits this round hard.
0:46
[SPEAKER_03]: He hits the line of the left.
0:48
[SPEAKER_03]: My truck has ripped them all around.
0:51
[SPEAKER_02]: What's up, guys?
0:52
[SPEAKER_02]: My truck.
0:52
[SPEAKER_02]: And you listen to Sports Park CEO, his current Buffon hand.
0:57
[SPEAKER_01]: We've gotten a lot of our listeners asking us, hey boys, we all speak to the market.
1:02
[SPEAKER_01]: For those of you who might be new to the show, Matthew is 16 years old, but I would trust his market sense and kids to anybody and we're going to talk a little bit about this wild, crazy sports card market that we're in and kind of how we got here and maybe give you guys a few tips and tools on navigating that.
1:19
[SPEAKER_01]: in the days ahead.
1:19
[SPEAKER_01]: So Matthew, how you feeling today?
1:21
[SPEAKER_00]: I'm feeling great today.
1:21
[SPEAKER_00]: I'm pumped up woke up early this morning, had a good team lift with the basketball team.
1:26
[SPEAKER_00]: Drinks and coffees.
1:27
[SPEAKER_00]: I'm fired up.
1:28
[SPEAKER_00]: I'm ready to be on here.
1:29
[SPEAKER_01]: Matt Foley, motivational speaker, but in the basement for an hour drinking coffee right now.
1:34
[SPEAKER_01]: Whoa, you ready to go.
1:36
[SPEAKER_00]: Yeah, I know.
1:37
[SPEAKER_00]: Great skit.
1:38
[SPEAKER_00]: I mean, we always make those references.
1:40
[SPEAKER_00]: Like, we have a couple of references.
1:41
[SPEAKER_00]: We always make it.
1:41
[SPEAKER_00]: And that full is always a trusty reference.
1:44
[SPEAKER_00]: We cannot do it.
1:44
[SPEAKER_01]: You know the most awkward moment of my life is probably because you get met fully because I'm your dad, right?
1:50
[SPEAKER_01]: And I've shown it to you.
1:51
[SPEAKER_01]: But I was doing it.
1:52
[SPEAKER_00]: Oh, on stage.
1:52
[SPEAKER_00]: And no one laughed at it.
1:53
[SPEAKER_00]: I was on stage.
1:55
[SPEAKER_01]: It was a group of like middle schoolers or high schoolers, and I did a math fully reference and nobody knew what I was talking about.
2:01
[SPEAKER_00]: But you got to know you're in farming, like no one knows you were showing me math fully videos and I was eight thinking it was the funniest thing ever.
2:07
[SPEAKER_00]: I was saying that the map you did it on the college game day a while back.
2:10
[SPEAKER_00]: You put the pillow and you like dressed up, but those are good times, college game days where we started everything, the guest speakers.
2:18
[SPEAKER_00]: But look, I'm ready.
2:19
[SPEAKER_00]: I'm firing up today about the market.
2:21
[SPEAKER_00]: I'm just I'm ready to get talk about some cards today.
2:23
[SPEAKER_01]: let me let me qualify what you just said there so if a lot of folks that follow us hamhouse sports on instagram follow the podcast you talk about a little mat now being a father son and how cool it is to watch us interact and just see how we have evolved in the card hobby or card business or whatever and i just wanted to say this to our listeners so
2:41
[SPEAKER_01]: When Matthew was probably six years old, seven years old, he had such an interest in sports.
2:46
[SPEAKER_01]: He was always looking at statistics.
2:47
[SPEAKER_01]: He was always memorizing stats.
2:50
[SPEAKER_01]: And we always loved college football because we cheered for NC State at the time with giving up on that pathetic pursuit.
2:57
[SPEAKER_01]: But no, I'm always going to be wolf packers, but nonetheless, Matthew and I, I started putting him on camera when he's probably six years old.
3:04
[SPEAKER_01]: We called it Ham House College Game Day.
3:07
[SPEAKER_01]: We would review the games of the week.
3:08
[SPEAKER_01]: We would talk about our picks, our players, and all this kind of stuff.
3:12
[SPEAKER_01]: And we had a little small social media following folks would jump on live.
3:15
[SPEAKER_01]: And that was really the genesis of like Ham House Sports.
3:18
[SPEAKER_01]: And then fast forward a few years.
3:20
[SPEAKER_01]: he comes to me and says hey dad I want to get into sports cards and it was the same gift set of your being on camera you being able to talk your market knowledge your memory of data that's really caused you I think to be super successful here so it's just cool man to see how that's transpired or the last thing is funny when we used to tell people
3:38
[SPEAKER_00]: Tell them we were in sports cards.
3:39
[SPEAKER_00]: We'd tell them sports cards is basically a mix between fantasy football and hamhouse college game day Yeah, you know tracking players and you know talking on camera buttons You know, it's kind of how it started so it's cool to be on sports arts CEO now much bigger Platform and audience then college game day, but it's cool to see where it's come.
3:57
[SPEAKER_01]: So weekly wrap up Matthew You mentioned you know basketball's up at running you've been doing some lifting any kind of things in your life You want to share I mean
4:06
[SPEAKER_00]: No, I've just been at pretty busy with basketball and then on the card front, I bought a cut bin behind all a couple cards and auction here and now I'm going to share when I favorite pickups.
4:16
[SPEAKER_00]: Victor Wemben-Yama, rookie Kaboom PSA7, Wendy's on one this year.
4:20
[SPEAKER_00]: He's literally averaging four blocks a game, third most in points.
4:24
[SPEAKER_00]: MVP front runner right now, so to pick up his rookie Kaboom, PSA7, cheapest one this sold in six months.
4:30
[SPEAKER_00]: So I really think it was a good buy and I could
4:36
[SPEAKER_00]: I think Wemby will eventually end up being a top five basketball player of all time.
4:40
[SPEAKER_00]: He's got the skill set, he's got the mental composure, and he's just the beast man.
4:44
[SPEAKER_00]: So I'm all in on by and Wemby right now.
4:46
[SPEAKER_01]: Yeah, shout out Gary Vee, our original interview with Gary Vee at the 2023 National.
4:52
[SPEAKER_01]: Yeah, I was like, you said Wemby boomer bust, and he said boom.
4:55
[SPEAKER_00]: he said boom and he said it's because of his mental game and everyone was worried about his injuries but his pregame ritual before like I mean he's not going to get injured if he keeps to him what he's doing and hopefully he can stay healthy but I'm all in I'm going to be right yeah cool cool on my front man we snuck away asking up away to the mountains last week a nice little getaway as we talked about with Bubba on the first episode of season three you know
5:24
[SPEAKER_01]: to reset and look at where was the last year, what was good about it, what's in the year ahead.
5:30
[SPEAKER_01]: You know, that's a little bit of a moment for me.
5:33
[SPEAKER_01]: So I snuck away last week to the Blue Ridge mountains and had a couple days with some buddies and just relaxed and took a deep breath and kind of hit reset.
5:42
[SPEAKER_01]: We are in the middle of a transition at early oak for the work world.
5:46
[SPEAKER_01]: We've hired two new producers, which brings our total to six, plus myself.
5:51
[SPEAKER_01]: So the businesses growing, you know,
5:54
[SPEAKER_01]: It's a challenging moment in time right now for growth and economics and all that kind of stuff.
5:58
[SPEAKER_01]: So certainly keeping our eyes on a lot of different things.
6:01
[SPEAKER_01]: But nonetheless, the card thing we're trying to wrap the year up and put some piddots on there.
6:06
[SPEAKER_01]: But today, we really wanted to attack this episode two-fold.
6:10
[SPEAKER_01]: It's no secret that the card market is changing and shifting.
6:16
[SPEAKER_01]: and we're going to talk about how we have approached that and how we would encourage other people and we've got a couple of listener questions as well.
6:24
[SPEAKER_01]: So one of the things that I want to go ahead and start off with is one of the reasons why I believe the sports card market is in an an interesting state right now.
6:34
[SPEAKER_01]: It's the same thing that drove it up is the same thing that is causing it to be more volatile and that is the corporate involvement.
6:41
[SPEAKER_00]: Yeah, just the theory I had, I had no clue if this is true or not.
6:45
[SPEAKER_00]: But sports car market this summer was probably the hottest.
6:48
[SPEAKER_00]: It is the hottest ever since COVID.
6:50
[SPEAKER_00]: We saw recently in last two weeks that underdog, very big sports betting app, trade to repack and prize picks, huge sports betting app, trade to repack.
7:00
[SPEAKER_00]: was the pump this summer because of these mass literally these repacts they spent forty million dollars on these cards yeah so was these repacts this summer was all of the money come in like was the market hot because of price picks and underdog preparing for the repacts yeah like because i should they're not buying anymore because the repacts are to say but do you think that the market
7:23
[SPEAKER_00]: was up because they had to fund the repack early.
7:26
[SPEAKER_01]: Yeah, I definitely think so the corporate involvement in the sports card game is what was driving the values.
7:32
[SPEAKER_01]: These were not in users buying cards to collect.
7:35
[SPEAKER_01]: These were businesses buying inventory and trying to corner the market on certain rare goat type cards.
7:43
[SPEAKER_01]: those of us who were in the market could find our way through and navigate that and capitalize on it and sell to those entities or sell on auction and then the fury or feverish kind of interest in the hobby with people trying to buy in and getting inventory, it just created an atmosphere where cards were going over comp, everything was getting sold and if you had the right
8:09
[SPEAKER_01]: acquisition channels and liquidation channels.
8:10
[SPEAKER_01]: You were making good money.
8:12
[SPEAKER_01]: Yeah.
8:12
[SPEAKER_01]: And we did.
8:13
[SPEAKER_01]: So I want to kind of open up the episode and talk about gambling's influence on the sports card hobby.
8:19
[SPEAKER_00]: Yeah.
8:19
[SPEAKER_00]: I mean, obviously we see.
8:21
[SPEAKER_00]: Phonatics is one of the biggest sports book companies.
8:24
[SPEAKER_00]: in the country, and this summer, they implemented, I mean, we posted a real bad.
8:29
[SPEAKER_00]: I got a like from Michael Rubin in about 20,000 views of people at the national protesting no fees, no fees, fanatics offered no fees if you take fancash, which fancash can either, you can either buy stuff on fancash collect or use the money and your fanatics gambling account.
8:46
[SPEAKER_00]: And doing that, I literally talked to someone last week, runs a card shop, and he was saying,
8:54
[SPEAKER_00]: and we took zero percent fees and literally took off and cash.
8:58
[SPEAKER_01]: Yep, so one of the rules, if you've not seen the movie yet because it's probably a little outside my comfort level of letting you watch it yet, but the movie casino, fantastic movies, or sazy, you know, Joe Pashy, Robert De Nero, Sharon Stone, it tells the story of the mafia's involvement in Las Vegas in the early days of Las Vegas's development.
9:18
[SPEAKER_01]: And one of the things, there's a monologue in the movie.
9:23
[SPEAKER_01]: And it is Robert De Niro, who manages the casino.
9:26
[SPEAKER_01]: He said something to the effect of, don't let leave the building.
9:30
[SPEAKER_01]: Like if a gambler's in the room, and he's doing well, go and offer him a suite and offer him a dinner.
9:39
[SPEAKER_01]: Yep, keeping in the system getting back to the table and he tells the story about he's like some some guy took us for a million dollars So we upgraded him to the penthouse, you know, we we entertained him or whatever and got him back the next day And he ended up losing that million and he lost a million chasing back He said so we were up basically a million dollars on this guy because we kept him in the system one of the things that's super interesting If people are putting money into the system and sports cars, let's say they take five grand
10:09
[SPEAKER_01]: They go buy a jewelry pack.
10:10
[SPEAKER_01]: Okay, let's say they hit right their five brands now 10 grand You know, and it it it keeps this fault sense of I'm up.
10:19
[SPEAKER_00]: Or means the same thing like There's a college basketball player here moments in North Carolina.
10:24
[SPEAKER_00]: He wants to buy a Cooper flag autograph He's like I don't want to spend a thousand dollars on it.
10:27
[SPEAKER_00]: I'm just gonna go buy two hundred dollar bucks
10:29
[SPEAKER_00]: And chances are you're not gonna hit one in 10 cases.
10:33
[SPEAKER_00]: He opens one box, hits it.
10:34
[SPEAKER_00]: He goes opens more three more boxes, didn't hit one.
10:37
[SPEAKER_00]: So he was up to $500 in the beginning.
10:39
[SPEAKER_00]: Yep.
10:40
[SPEAKER_00]: You should take your win right there and he opened three more boxes and didn't hit anything.
10:43
[SPEAKER_01]: So the idea is the nature of opening boxes of cards, all right?
10:49
[SPEAKER_01]: it is a gambling at its at its core.
10:52
[SPEAKER_01]: It is gambling.
10:53
[SPEAKER_01]: You're going to open the cards.
10:55
[SPEAKER_01]: Most people.
10:56
[SPEAKER_01]: Not because you're collecting the stuff.
10:57
[SPEAKER_00]: I tell you a perfect example of us.
10:59
[SPEAKER_00]: So y'all know stories.
11:01
[SPEAKER_00]: We're going to go to Bubba's house and Bubba convinces Dad.
11:06
[SPEAKER_00]: So let's open a Bowman case and we pull us out of your hood bread.
11:09
[SPEAKER_00]: We're running around the house, throwing our hands up and Bubba says,
11:12
[SPEAKER_00]: You want to go for one more?
11:14
[SPEAKER_00]: If we wanted to hit the side you're hope, I promise you we wouldn't have opened another one.
11:17
[SPEAKER_00]: We would have been three grand in the hole, but since we hit it, you hit the one big card, you have to go back and big mess, like while in Rome, what's to do it?
11:24
[SPEAKER_00]: We opened another one, barely hit anything in the next case.
11:26
[SPEAKER_00]: Trash.
11:27
[SPEAKER_00]: And trash.
11:27
[SPEAKER_00]: And that just shows, I'm taking psychology right now as a class and just learning about the human brain and gambling and addictive, like it's crazy to learn about this stuff and how just because they chase you
11:42
[SPEAKER_00]: 50% profit boost on the Monday.
11:44
[SPEAKER_00]: Monday night game.
11:45
[SPEAKER_00]: Oh, this is definitely a lock and it doesn't hit.
11:47
[SPEAKER_01]: I mean, it's so like it's such like psychology and yes, like that they implement it and so what you saw in the in the card hobby was kind of those rules of engagement for casinos being applied to a consumer product here and you see the investment component to like comparing it to stocks or alternate investment classes and it just went nuts.
12:08
[SPEAKER_01]: And now you're seeing it settle out and it'll weed out some of the bad money, you know, some of the bad players, the bad actors.
12:18
[SPEAKER_01]: And again, the collectors are always going to be here.
12:20
[SPEAKER_01]: And so in this type of market, I told them out there today, I said, button.
12:25
[SPEAKER_01]: We've never done high-end cards in a volatile market.
12:29
[SPEAKER_01]: We've always been doing higher-end cards in a rising market.
12:32
[SPEAKER_01]: So it's a false sense of security about, A, your skill set, because you're like, oh dude, I'm a genius, I'm a genius.
12:39
[SPEAKER_01]: Oh, I'm a genius, I'm crushing it in cards right now.
12:42
[SPEAKER_01]: It's like, dude, you have to be dumb.
12:44
[SPEAKER_01]: you know, to some degree.
12:45
[SPEAKER_01]: Yeah, to not to not do do well over the last few years with the rising, you know, kind of environment.
12:51
[SPEAKER_01]: But that said, it gives you this fault since security this is always going to be there.
12:55
[SPEAKER_01]: So gambling's influence on the hobby drastically changed.
12:58
[SPEAKER_01]: It got a lot of people in.
12:59
[SPEAKER_01]: The hope is is that those people will love the hobby and they'll start collecting cards and it will build collectors.
13:06
[SPEAKER_01]: And as you have organizations like
13:12
[SPEAKER_01]: It will weather the storm of that capital that just gets thrown in, but what I've noticed, and I know you've noticed this, is a lot of the repacts now are moving to ultra low end and ultra high end.
13:24
[SPEAKER_00]: And ultra high end.
13:26
[SPEAKER_00]: I saw a picture yesterday someone posts in a Facebook group.
13:29
[SPEAKER_00]: I need only 90 to 100 K basketball, 60 to 90 K baseball and 80 to 100 K footballer.
13:35
[SPEAKER_00]: That's 0.001% right there that we've never even owned a card worth $80,000 and we've been doing this for four years to have like that's like top top ranges and then the ultra low end and let's get into this conversation of low end.
13:50
[SPEAKER_00]: I had a
13:51
[SPEAKER_00]: big, big repat company coming to me this summer and say, I really want you to start doing low end for me.
13:55
[SPEAKER_00]: And I wouldn't do it.
13:56
[SPEAKER_00]: And low ends different when you're dealing with, you know, one card two cards at a time.
14:02
[SPEAKER_00]: But there are people that we're dealing in massive cards that literally like almost sold out their whole business just to sheet low end cards for these repackers.
14:11
[SPEAKER_00]: Like,
14:12
[SPEAKER_00]: Repackers, what I found out, they pay strongly on the cheapest cards because they need the inventory.
14:17
[SPEAKER_00]: We see people post need one to $100 cards paying a 105% and you know why they need the cheap ones is because not everyone can afford a $15,000 repack.
14:27
[SPEAKER_00]: But your classic dad and your son can afford a $50 repack and they're going to do it every time.
14:33
[SPEAKER_00]: We were talking to a god.
14:34
[SPEAKER_00]: We went to a real estate event.
14:36
[SPEAKER_00]: There's a guy's like, I get on what not.
14:38
[SPEAKER_00]: I put my kids to bed.
14:41
[SPEAKER_00]: And just getting into $20, $50 packs.
14:44
[SPEAKER_00]: And they need the low end.
14:46
[SPEAKER_00]: And my thing to y'all is like, let's just say I did go out.
14:50
[SPEAKER_00]: And for a whole week, I worked my butt off to buy cheap cards at 95% because you have a pay strong for cheap cards.
14:57
[SPEAKER_00]: And let's say average of 50 bucks a card paid 95% sell them at 100.
15:00
[SPEAKER_00]: So I'm making 5% on, what's that?
15:02
[SPEAKER_00]: 5 grand?
15:03
[SPEAKER_00]: When I literally could go just buy a card for 5 grand, sell 5,500.
15:07
[SPEAKER_00]: And the same amount of time that I could just do one of it,
15:11
[SPEAKER_00]: of them.
15:11
[SPEAKER_00]: I could do for one.
15:12
[SPEAKER_01]: Well, that was that was part of our transition a couple of years ago.
15:15
[SPEAKER_01]: We said rather than deal with $10,500 cards, let's deal with $15,000 card.
15:22
[SPEAKER_01]: And being able to level up like that was a big, big, you know, jump for us and it ended up working out extremely well because the same rules from most part apply to a
15:34
[SPEAKER_01]: 50-dollar card, a five-dollar card, or a five-thousand-dollar card.
15:37
[SPEAKER_01]: You know, it's the same kind of market, the same kind of percentages or whatever.
15:41
[SPEAKER_01]: And so when you start to kind of find your niche, I mean, you can buy and cheat low-end cards.
15:45
[SPEAKER_01]: You can buy low-end cards and flip, you know.
15:48
[SPEAKER_01]: You might have people who, I mean, when we first met David, David had gone and graded his entire childhood collection, and he had hundreds.
15:55
[SPEAKER_01]: Five hundred slides.
15:56
[SPEAKER_01]: you say seven Kevin Garnett cards where if you find a situation like that and and somebody's looking at the generate capital you can buy out collections and then turn around and flip them so there's there's opportunities anywhere but again right now the the market is trending towards really low-end product or really high-end product.
16:15
[SPEAKER_00]: And I love the point you just made about going out and buying out collections.
16:19
[SPEAKER_00]: I think that this market downfall is going to scare a lot of the people that gambled out.
16:24
[SPEAKER_00]: And recently, I can think of two deals in the last few months, where $20,000 plus deals of people that have just gotten into repacts, and literally just have all their cards that are to show.
16:36
[SPEAKER_00]: like, don't even, they don't even price on this like, hey, what is this worth?
16:38
[SPEAKER_00]: You tell me what you don't pay.
16:40
[SPEAKER_00]: And these are the type of guys that are not collectors, and they see the market starting to go down and they're going to want to get out.
16:46
[SPEAKER_00]: So if you have the capital right now to take advantage of people wanting to get out of cards, then that's free money for you.
16:52
[SPEAKER_00]: Like, that's, that's one thing you got to look at in a low mark.
16:55
[SPEAKER_00]: Like, I think the biggest question that kind of the main idea today is how can you make money in a bear market?
17:02
[SPEAKER_01]: Yeah.
17:02
[SPEAKER_01]: Well, the saying goes, bears make money, bulls make money, pigs get slaughtered, right?
17:08
[SPEAKER_01]: You can make money in a bear, you can make money in a bull, but if you're greedy, if you try to be a pig, you get slaughtered.
17:14
[SPEAKER_01]: And so again, one of the things that you just mentioned is you have to have conviction in the market overall and in understanding of the market overall to want to weather the storm.
17:25
[SPEAKER_01]: If you panic sell and it's called in investment terms,
17:31
[SPEAKER_01]: Okay.
17:31
[SPEAKER_01]: If on my shelf right now, I have a Michael Jordan star rookie.
17:35
[SPEAKER_01]: Okay.
17:37
[SPEAKER_01]: We talked about it yesterday.
17:38
[SPEAKER_01]: The card values 60 grand.
17:40
[SPEAKER_01]: If somebody comes to me and says, Hey, I'll give you 60 grand for that Jordan star rookie.
17:43
[SPEAKER_01]: We said no.
17:45
[SPEAKER_01]: It'll sit on my shelf at 60 grand.
17:47
[SPEAKER_01]: If somebody comes and says, Hey, off for you 75.
17:49
[SPEAKER_01]: done.
17:50
[SPEAKER_01]: Why?
17:51
[SPEAKER_01]: Because that card at $75,000 makes more sense for me to have the money than the actual card itself, right?
17:58
[SPEAKER_01]: And again, that's where you have to look at the market and talk about this liquidity pinch.
18:02
[SPEAKER_01]: Because if there's a liquidity pinch and people are selling cards, they're readily available price goes down.
18:08
[SPEAKER_01]: But if they're selling cards that are rare cards,
18:11
[SPEAKER_00]: I mean, we've noticed that with the, let's just look at, I mean, I think I mentioned this last time on the podcast, the Jordan scoring Kings versus the Jordan Thunder and Lightning, the Jordan Thunder and Lightning sold in June for $16,000 same exact card, same sir, everything sold for $33,000 on FNAX.
18:29
[SPEAKER_00]: So a double in price on that card, one of the rare stored inserts, this is only.
18:33
[SPEAKER_00]: $3,000.
18:34
[SPEAKER_00]: $3,000.
18:35
[SPEAKER_00]: And there's only $4.25 in a PSA-8.
18:38
[SPEAKER_00]: And then the scoring Kings PSA, $6,100 national and $1,000, like they're under 4K now.
18:43
[SPEAKER_01]: Really?
18:44
[SPEAKER_00]: Yeah.
18:44
[SPEAKER_01]: And so literally, they've almost half said, because there's not enough end users on the back end to keep up with the demand for the liquidity pinch of PSA.
18:53
[SPEAKER_01]: Sure.
18:53
[SPEAKER_00]: It's a collector's card.
18:54
[SPEAKER_00]: It's a Jordan.
18:55
[SPEAKER_00]: But there's 6,000 of them.
18:57
[SPEAKER_00]: Are there 6,000 collectors of a Jordan scoring Kings PSA?
19:00
[SPEAKER_00]: And I would say.
19:01
[SPEAKER_01]: They're probably are, but there's more that probably need the thunder and lightning.
19:06
[SPEAKER_00]: That's what they're 300.
19:07
[SPEAKER_00]: Exactly.
19:08
[SPEAKER_00]: So this leads us to the bottom.
19:09
[SPEAKER_00]: I think this is a perfect opportunity to talk about the flea versus the star.
19:13
[SPEAKER_00]: The flea is down, the star is up.
19:16
[SPEAKER_00]: Because there's only 600 stars greater with PSA.
19:19
[SPEAKER_00]: So the end of the day it becomes like, I have a star Jordan and you don't.
19:23
[SPEAKER_00]: And there's never going to be any more printed.
19:24
[SPEAKER_00]: The flea's, there's 60,000 of them greater.
19:27
[SPEAKER_00]: Like you can literally go on eBay,
19:29
[SPEAKER_00]: I just over, it has to be over a thousand players listed.
19:32
[SPEAKER_00]: There might be two or three stars listed.
19:35
[SPEAKER_00]: And that's why I think the star will always be superior to the, to the, to the future.
19:39
[SPEAKER_01]: Well, when you start looking at specific cards and this, this goes into this next little thought here is right now is an awesome opportunity to keep your eyes open for getting
19:53
[SPEAKER_01]: PC rare cards at value because when you have a liquidity pinch and people are looking to sell that's when you can take advantage.
20:02
[SPEAKER_01]: I will tell you we have bought more high-end Cal Ripkin in the last two months than we've bought in the last year.
20:10
[SPEAKER_01]: Tip three years.
20:10
[SPEAKER_01]: Yep because they got put on auction.
20:13
[SPEAKER_01]: For two years you did not see a PMG Ripkin go-on auction.
20:18
[SPEAKER_00]: I don't think we share that we bought the PMG Ripkin but there you go.
20:21
[SPEAKER_01]: PMG Ripkin purchased.
20:22
[SPEAKER_01]: Yes, credentials Ripkin.
20:24
[SPEAKER_01]: The credentials Ripkin and PSA9 have not seen it on auction in two years, just bought it.
20:29
[SPEAKER_01]: The certified mirror gold Ripkin, these are cards that they're literally less than 20 graded.
20:35
[SPEAKER_01]: And again, they've been sitting in collections and when they come up, you just have to get them.
20:40
[SPEAKER_00]: Yeah, I mean, and I think we almost look at it like I I something I do is like when I have a conversation about anything I try to find a way how I can relate to the cards.
20:47
[SPEAKER_00]: And yesterday I'm talking my grandma like and we she got to leave the house and tell her by and she's like, yeah, we're meeting with our stock program like time to sell and she's like
20:56
[SPEAKER_00]: I ain't selling my stock.
20:57
[SPEAKER_00]: It's always funny because I have a little bit of stocks and I was get on them because they love stock market.
21:01
[SPEAKER_00]: But it really opened my eyes and they're like, look, trust me, if I go down this year, but give it two years and we'll be back up 10%.
21:09
[SPEAKER_00]: And just thinking about that, those riftens, they might go down in the next three months.
21:14
[SPEAKER_00]: But you honestly, you put them in a shoe box under your bed and you leave them in two years, they'll be double your money.
21:19
[SPEAKER_01]: Well, you're talking about the rarist of the rare cards of that player, you know what I mean?
21:25
[SPEAKER_01]: And there's always going to be a market for that because of the ego, the human ego goes, I have it, you don't what you just said.
21:33
[SPEAKER_01]: And it is, oh, I thought I got a notification.
21:35
[SPEAKER_01]: Oh, that's a great order.
21:36
[SPEAKER_01]: Yeah.
21:36
[SPEAKER_01]: we have a grading order on a couple of autographs at PSA and I got a PSA notification.
21:41
[SPEAKER_01]: I thought we're going to do it live on there.
21:42
[SPEAKER_00]: That would have been sick.
21:43
[SPEAKER_00]: Gosh, it's freaking a PSA.
21:45
[SPEAKER_00]: That orders what a month over there.
21:46
[SPEAKER_01]: A month over there.
21:47
[SPEAKER_01]: It's awful.
21:48
[SPEAKER_01]: A month over due right now.
21:49
[SPEAKER_01]: And they just opened up the value tiers again.
21:51
[SPEAKER_01]: So, and again, you look at the perfect storm though, PSA grading delays, right?
21:56
[SPEAKER_01]: the liquidity pinch like all of that happening at the same time midterm elections economic boom I mean all of it is kind of like this atmosphere but to your point it does come back around especially on rare collectible I mean it's always you can look at every year that like
22:12
[SPEAKER_00]: December, November, December, January, always soft times in the market, especially for us.
22:16
[SPEAKER_00]: We've been in the last year, we bought more bumming in November, December, you got to think a year back to this day.
22:22
[SPEAKER_01]: We were probably behind Connor, Connor, just starting to buy Connor and so again, just the topic of conversation is just understanding the market, understanding where the opportunity is, how the market's flowing right now.
22:35
[SPEAKER_01]: And I would say we've done a really good job of limiting our exposure, limiting our risk.
22:42
[SPEAKER_01]: available when the right moment comes when the right opportunities come along, we can pick them up.
22:48
[SPEAKER_01]: And so it's being positioned to manage the market well instead of being over leveraged overextended.
22:55
[SPEAKER_01]: Yeah, it's like a lot of people with rental properties all the time.
22:58
[SPEAKER_01]: There's people that have rental property portfolios and they leverage every house, max value on their equity to go acquire more assets.
23:07
[SPEAKER_01]: Therefore, they're required to have cash flow.
23:10
[SPEAKER_01]: You either have to sell off an asset or you have to just get absolutely blasted.
23:14
[SPEAKER_01]: It's no different.
23:15
[SPEAKER_00]: Before we get into the next topic, I have a game that I've thought of before.
23:18
[SPEAKER_00]: I think we did it maybe two years ago on the podcast that we're going to do and the listeners can play along with.
23:23
[SPEAKER_00]: So, I'm going to be five cards and you're going to tell me if it's up or down in six months and up and down in a year.
23:28
[SPEAKER_00]: A year, six months and a year.
23:29
[SPEAKER_00]: Yep.
23:30
[SPEAKER_01]: Okay.
23:30
[SPEAKER_00]: So, start off.
23:31
[SPEAKER_00]: We're going to go with literally one of the most high selling cards of all time.
23:34
[SPEAKER_00]: We're going to go with the King Griffin, like a sales for the most, the King Griffin upper deck 1989 rookie card PSA 10.
23:39
[SPEAKER_01]: I think lower in six months and lower in a year.
23:42
[SPEAKER_00]: Really?
23:43
[SPEAKER_00]: You think so that card was like 3500 last December, 6500 right now.
23:48
[SPEAKER_00]: So you think that card is less than $6500 any year and six months.
23:52
[SPEAKER_00]: How do you?
23:52
[SPEAKER_00]: What about the Brady
23:57
[SPEAKER_00]: back down to twenty.
23:58
[SPEAKER_00]: You think over under twenty k and six months in the year.
24:01
[SPEAKER_00]: What's the population on 10 15 I think I was in the 1,500 but 1,500 double check that real quick.
24:07
[SPEAKER_00]: I will double check that but I do know it's around the 20,000.
24:10
[SPEAKER_00]: You're about the moment.
24:11
[SPEAKER_00]: The 12,000.
24:12
[SPEAKER_01]: I'm in Cronbrake.
24:13
[SPEAKER_01]: Tom Brady.
24:13
[SPEAKER_00]: Yes, I think.
24:15
[SPEAKER_01]: Yeah.
24:15
[SPEAKER_00]: I think.
24:17
[SPEAKER_00]: Bingo, 1250, 20,000, but 21,500 is the last sale.
24:22
[SPEAKER_01]: And double check the Griffie population in PSA 10.
24:25
[SPEAKER_01]: 5,000.
24:26
[SPEAKER_01]: OK.
24:27
[SPEAKER_00]: I would say the Brady Crooms are down.
24:29
[SPEAKER_00]: Well, so there's 4255 Griffies.
24:32
[SPEAKER_00]: And if you look at match grade on the Griffie, if you skip it back to, let's just go to.
24:38
[SPEAKER_00]: September 9th, 63 50, 6200, 6200.
24:41
[SPEAKER_00]: Yeah, you go up right now on November 1st, 51.
24:45
[SPEAKER_00]: 51 for you, that's in a month.
24:48
[SPEAKER_01]: It's down in a month.
24:49
[SPEAKER_01]: So that's the grip for you.
24:50
[SPEAKER_01]: So for those of you who can't keep up with the pace of things, Matthew's talking about the 1989 upper deck, King of the Junior Star rookie.
24:57
[SPEAKER_01]: in a PSA 10.
24:58
[SPEAKER_01]: There's 40 how many copies.
25:01
[SPEAKER_01]: 42, 540, 200, PSA 10s.
25:03
[SPEAKER_01]: It got up to 6200.
25:05
[SPEAKER_01]: It's currently sitting around 5K.
25:07
[SPEAKER_01]: I do think it is lower in six months and probably lower to flat in a year.
25:12
[SPEAKER_01]: I mean, again, with the market cap, if you do four, what's what's the number here?
25:16
[SPEAKER_01]: So, if you look at 4255 times, 4255 times 5,000.
25:20
[SPEAKER_01]: Yeah.
25:22
[SPEAKER_01]: That's $21 million, so is there $21 million of interest in the griffy?
25:31
[SPEAKER_01]: I don't know.
25:32
[SPEAKER_00]: I think the car goes down about that.
25:34
[SPEAKER_01]: Yeah, I think that's where it was.
25:35
[SPEAKER_01]: So now do that with the Brady.
25:37
[SPEAKER_01]: There's $15 or $1250.
25:37
[SPEAKER_01]: Yeah, and then.
25:38
[SPEAKER_01]: And it's doing what?
25:39
[SPEAKER_01]: $21,500.
25:44
[SPEAKER_01]: That's 26 million.
25:45
[SPEAKER_03]: So it's about the same market cap.
25:47
[SPEAKER_01]: What I think is probably interesting is is I think you would find the market cap of the Griffie and the market cap of the Brady to be fairly similar.
25:54
[SPEAKER_01]: The problem is as Griffie had one rookie of that kind of cowl.
25:58
[SPEAKER_01]: Brady had Brady had the couple.
26:00
[SPEAKER_00]: But that's still the iconic.
26:01
[SPEAKER_01]: So it was good.
26:02
[SPEAKER_01]: I would say Brady is my for your game, my Brady would be down and down.
26:06
[SPEAKER_00]: You think what I do?
26:07
[SPEAKER_00]: What about 1986 through Georgia?
26:09
[SPEAKER_00]: So about this, PSA Aates were $21,000
26:14
[SPEAKER_00]: one just sold for thirteen thousand eight hundred dollars.
26:16
[SPEAKER_01]: So the PSA eight's got up to what twenty one k at another thirty thirty thirty thirty thirty percent.
26:22
[SPEAKER_00]: That's insane.
26:23
[SPEAKER_00]: I look at an I normally I like the last sales thirteen eight sixteen two fourteen six.
26:29
[SPEAKER_00]: So it's around fifteen six.
26:30
[SPEAKER_00]: One population nine thousand four hundred and fifty.
26:34
[SPEAKER_00]: She's times thirteen k. No, no,
26:40
[SPEAKER_01]: That's $141 million.
26:43
[SPEAKER_01]: So that goes to show you.
26:44
[SPEAKER_01]: That's the market cap on a PSA eight-flear Jordan versus the market cap on a PSA 10 Chrome Brady.
26:51
[SPEAKER_01]: Dude, it's nuts.
26:53
[SPEAKER_01]: So, I don't think the market caps that much higher on Jordan, or should be.
26:58
[SPEAKER_01]: Yep.
26:58
[SPEAKER_01]: I think Jordan, I think the Jordan Fleeers are probably over valued.
27:03
[SPEAKER_01]: I think they come down again.
27:04
[SPEAKER_01]: You think lower and lower again.
27:06
[SPEAKER_02]: Yeah.
27:07
[SPEAKER_01]: I just, I can do this.
27:08
[SPEAKER_01]: It's market cap.
27:09
[SPEAKER_01]: It's how much money is being willing to be put into.
27:12
[SPEAKER_00]: On those three cards that you've just told me,
27:15
[SPEAKER_01]: I'm saying down.
27:16
[SPEAKER_00]: So what's the next one?
27:18
[SPEAKER_00]: 1984 star Jordan PSA 6.
27:20
[SPEAKER_00]: This is up.
27:21
[SPEAKER_00]: So and here's the last sale was $82,000 and it's a pop 148.
27:27
[SPEAKER_00]: and which grade is this?
27:28
[SPEAKER_00]: Six.
27:30
[SPEAKER_01]: 12 million market cap.
27:31
[SPEAKER_01]: Yep.
27:31
[SPEAKER_01]: So you think some of the market cap from PSA eight Jordan's are going to move into the Star Jordan?
27:37
[SPEAKER_01]: Oh, yes, Star so loosely.
27:39
[SPEAKER_00]: If you look at PSA grade at 712, PSA eight value, 560 grand, PSA.
27:46
[SPEAKER_01]: So the market cap on a PSA eight-flear Jordan is 10 times the market cap on a PSA six star.
27:54
[SPEAKER_00]: Yeah, ten times and it's not I guess the only deciding factor is is our people willing to buy into a card at 82,000 when they can go buy him one And then I mean, I remember everyone calling I mean, so you know everyone I don't know if you know Dave high-speed card chase He's your star Jordan guy, right if you want to star Jordan you go through Dave and Dave sold
28:16
[SPEAKER_00]: Jeff Wilson, a star Jordan PSA at the National 3 years ago for 100 grand and Jeff and Dave made a comment.
28:23
[SPEAKER_00]: He said the star PSA will outsell a flea PSA 10 in two years.
28:27
[SPEAKER_00]: Yeah.
28:27
[SPEAKER_00]: Everyone call them nuts.
28:28
[SPEAKER_00]: It's do literally triple.
28:29
[SPEAKER_00]: Yeah.
28:30
[SPEAKER_00]: It is.
28:30
[SPEAKER_00]: It's triple.
28:31
[SPEAKER_01]: So I think that.
28:32
[SPEAKER_01]: Again, this is kind of nuanced guys for our listeners.
28:34
[SPEAKER_01]: This is very kind of nitty-gritty when you start to really analyze and understand the sports card market and look at the market cap and the population on it kind of stuff.
28:42
[SPEAKER_01]: It's fascinating.
28:43
[SPEAKER_01]: It's what drives the market, the availability, the regularity cards, every card that you said, the Jordan Flair, the Brady Crom, the Griffie, you can get your hands on.
28:52
[SPEAKER_01]: It's harder to get your hands on the market.
28:53
[SPEAKER_01]: Last card.
28:53
[SPEAKER_00]: And we're going to make it quite 1952 tops of Mickey Manel, PSA2.
28:58
[SPEAKER_01]: do you think this is a tough card man is do you think it's up down flat because the market's going down I think it's up because it's it is a card that that everybody wants to own and from a population standpoint there's not 6,000 of them 10,000 of them eight whatever there's only what were there 3,000 of them total great 3,000 total great
29:18
[SPEAKER_01]: Yeah, so I just think that there's enough demand on that card as one of the most iconic of all time.
29:23
[SPEAKER_01]: It makes me feel strong and confident in the value of that card.
29:26
[SPEAKER_01]: Not much, but I do think it would be up and up.
29:29
[SPEAKER_01]: So fun little game.
29:30
[SPEAKER_01]: All right.
29:31
[SPEAKER_01]: Moving on here.
29:31
[SPEAKER_01]: So the final thing on the episode today, I want to talk about is when you have a market that's changing.
29:39
[SPEAKER_01]: We talked about this yesterday.
29:40
[SPEAKER_01]: And this is what I really want our listeners to take.
29:43
[SPEAKER_01]: The word discipline becomes more and more important, right?
29:48
[SPEAKER_01]: And we were on a call business call with Bubba the other day.
29:51
[SPEAKER_01]: And we talked about the difference between an opinion and a rule, okay?
29:57
[SPEAKER_01]: And what I mean about that is in the business, it's fine for you to have an opinion against the five cards that I just said.
30:03
[SPEAKER_01]: Yeah.
30:04
[SPEAKER_01]: You could say, hey, my opinion is different, right?
30:06
[SPEAKER_01]: But then we establish rules that we operate by and here would be a rule.
30:12
[SPEAKER_01]: We are not holding a griffy P.S.A.
30:16
[SPEAKER_01]: 10 for longer than 30 days.
30:18
[SPEAKER_00]: I mean, and we literally established a couple of rules on this business.
30:22
[SPEAKER_00]: I don't know if you want to mention them, but one of the rules was, we can't.
30:25
[SPEAKER_01]: And this is, this is the business side of the hobby, guys.
30:28
[SPEAKER_01]: This is not our personal collection.
30:29
[SPEAKER_01]: So we have our personal collection as we, we're, we're duality here.
30:33
[SPEAKER_01]: Like we have the Hamhouse, which is our collection, and our cards that we got to hire us at on the
30:38
[SPEAKER_01]: Yeah, they sit on the shelf and stuff like that.
30:39
[SPEAKER_01]: But then there's the business as far as trying to break consistent revenue.
30:43
[SPEAKER_01]: So from a revenue standpoint, one of those rules is no card held over 30 days.
30:48
[SPEAKER_00]: Yeah.
30:49
[SPEAKER_00]: And we did an awful job at that rule on some cards, but bubble was pretty clear about how it's kind of like, you, there's no card we hold more in 30 days.
30:58
[SPEAKER_00]: Another rule that we implemented, a card is either at grading, coming in the mail or on auction.
31:03
[SPEAKER_00]: Yep.
31:04
[SPEAKER_00]: We don't have cards sitting at our house.
31:06
[SPEAKER_01]: Yep.
31:06
[SPEAKER_01]: Now again, if you buy a card, it goes back to a rule that every card has to have a game plan.
31:13
[SPEAKER_01]: Right?
31:14
[SPEAKER_01]: What are we doing with it?
31:15
[SPEAKER_01]: What's our timeframe?
31:16
[SPEAKER_01]: What's our expectation?
31:18
[SPEAKER_01]: And then everybody in the business gives it the thumb up and we move on or we say thumbs down and we don't move on.
31:23
[SPEAKER_01]: So we're just getting really strategic and limited on what we buy, but the good news is, it's like you said, if people are selling collections and you can cash them out and you've got a game plan with those cards, then you can make it work within the model.
31:34
[SPEAKER_01]: So I would just say as an encouragement to our listeners, if you do operate the sports card, your business, have a rule.
31:41
[SPEAKER_01]: Okay, here's an example.
31:43
[SPEAKER_01]: if you want to have it as part of your business strategy to buy into re-packs or buy on what not or open cards and breaks, that's fine.
31:51
[SPEAKER_01]: But you better have a rule on limiting yourself and on selling profitable cards when you hit them to keep your cash.
31:59
[SPEAKER_00]: I know things like if you're a seller on what not.
32:02
[SPEAKER_00]: I think that you would take a massive hit if the economy like took a big hit like if we had another like stock market crash or something because all your buyers, your buyers aren't people that are flipping cars, your buyers aren't people that just want that are like grown men going on what not 11 o'clock at night buying cards to kind of sit them away like for double
32:30
[SPEAKER_01]: or if they're in debt so I really think that what not sellers can take a hit if it's since that's 90% of the audience yeah yeah when you understand kind of what what it is but again if it's it's it's about the kind of car the type of car and kind of the stress so it's fine for you to have an opinion that the market's up the market's down or whatever but the question is do you actually have a rule and are you disciplined to follow that rule
32:53
[SPEAKER_01]: that would include things like not getting overextended.
32:56
[SPEAKER_01]: One of the rules that I've always held on our PC set of things is I want as much cash in the business if we have inventory.
33:04
[SPEAKER_01]: And right now that's a little bit offset because we've had a just massive increase in the Star Jordan's value by some of these rare ripkins.
33:12
[SPEAKER_00]: I think we shouldn't even look about value.
33:14
[SPEAKER_00]: I think we should look at purchase price.
33:16
[SPEAKER_00]: because Star Jordan was literally almost tripled.
33:19
[SPEAKER_00]: Yeah.
33:20
[SPEAKER_00]: So it's not even fair.
33:21
[SPEAKER_01]: You have as much cash available as you have cash exposed.
33:24
[SPEAKER_01]: Yes.
33:25
[SPEAKER_01]: Yeah.
33:25
[SPEAKER_01]: Yeah.
33:26
[SPEAKER_01]: And that's a rule that I like to follow.
33:28
[SPEAKER_01]: And no matter, we're talking about something else.
33:29
[SPEAKER_01]: I'm like, nope.
33:30
[SPEAKER_01]: We've got to go sell something before we can buy something because I like to have that balance.
33:34
[SPEAKER_01]: Right.
33:34
[SPEAKER_01]: So all right.
33:35
[SPEAKER_01]: Final kind of thoughts for the episode.
33:38
[SPEAKER_01]: We have a question.
33:39
[SPEAKER_01]: Two listener questions.
33:40
[SPEAKER_01]: The what we'll deal with the AI one last.
33:42
[SPEAKER_01]: But let's do on this.
33:44
[SPEAKER_01]: Talking about a strategy in the sports card market of buying based on future performance.
33:51
[SPEAKER_01]: Okay, let's use a football example and let's use a basketball.
33:54
[SPEAKER_00]: You know, I look at it, I look at it as putting a bet on a player.
33:57
[SPEAKER_00]: And instead of a bet, you're buying a card.
34:00
[SPEAKER_00]: So let's just say you went and you, I mean, it's almost like educated.
34:03
[SPEAKER_00]: Okay, Patrick Holmes is playing the third worst past defense in the NFL.
34:08
[SPEAKER_00]: I'm going to go buy a Cuban Patrick Holmes.
34:11
[SPEAKER_00]: And hopefully he dominates those for four touchdowns and the card goes up.
34:15
[SPEAKER_01]: But I don't think it's that immediate I think and a bet that pays out it pays out, but I think with cards I think you have to have more of hey before the season who's gonna win MVP.
34:24
[SPEAKER_00]: Oh, yeah, that kind of thing before it's but or you can go equally as you would have bought a guy like Jamir Gibbs
34:31
[SPEAKER_00]: before David Montgomery got traded, he'd probably gone up because they don't split carries anymore.
34:36
[SPEAKER_00]: He's the number one running back best fantasy player, one of the most valuable players in the league.
34:40
[SPEAKER_00]: Our feud about a guy like Jackson Smith and Jigba.
34:42
[SPEAKER_00]: He's probably one of the, he's, in my opinion, he's the best receiver in the league.
34:45
[SPEAKER_00]: But if you would have bought him, I remember Gary was, or Bubba was buying really big Jackson Smith and Jigba.
34:51
[SPEAKER_00]: I laughed and sell a gold prism for $500 at the Atlantic card show.
34:55
[SPEAKER_00]: because he was just this like wide receiver, and now it's probably $5,000, I sort of gold downtown Jackson Smith and Jigba for $1,500 and $10,000 a quarter right now.
35:05
[SPEAKER_01]: Yeah, now again, that's a fun game to play because you've got a guy's car that you get to watch on Sundays or whenever he's playing or whatever, but that is a much more volatile game because of things like Zion Williamson.
35:19
[SPEAKER_01]: because of things like Michael Pentech's Jr. Because of things like rhetoric.
35:23
[SPEAKER_01]: Desmond, these guys are now pretty much non-existent and their card values are not.
35:29
[SPEAKER_01]: So when you get into the speculation.
35:31
[SPEAKER_00]: You look at that 2022 to 2021 to 2023 quarterback class, absolutely horrendous.
35:38
[SPEAKER_01]: I would be curious to see you.
35:39
[SPEAKER_00]: There's not a single one of the performers, but he is stuff.
35:43
[SPEAKER_00]: crash.
35:43
[SPEAKER_00]: I know, but I'd love to see what's Trevor Mac Jones just infields.
35:47
[SPEAKER_00]: Tray Lance Trevor Lawrence.
35:48
[SPEAKER_00]: Those were the big for Zack Wilson.
35:50
[SPEAKER_00]: Those were the big five.
35:51
[SPEAKER_00]: One out of the five is still starting quarterback and his cards are still half from where they were.
35:56
[SPEAKER_00]: 2022.
35:57
[SPEAKER_00]: Can he pick it?
35:58
[SPEAKER_00]: Sam Howell Desmond Ritter.
36:00
[SPEAKER_00]: All full trash.
36:01
[SPEAKER_00]: If you look at 2023, 2023 wasn't
36:04
[SPEAKER_00]: Bryce Young C.J.
36:06
[SPEAKER_00]: Stroud, who else was in that last time?
36:09
[SPEAKER_00]: No, that's the next year.
36:10
[SPEAKER_00]: And that's why I stopped there.
36:10
[SPEAKER_00]: The next class at J. N. Daniels Drake, May, Boneyx, Caleb Williams, Michael Pentex, like this all been decent.
36:16
[SPEAKER_00]: But dude, the three classes before that rough.
36:19
[SPEAKER_01]: Yeah, it just goes to show you the longevity of players in the league for sure.
36:23
[SPEAKER_01]: So again, buying on performance is a strategy that you can hit with.
36:28
[SPEAKER_01]: But,
36:29
[SPEAKER_01]: Again, this goes back to what we talk about the other on the last episode, who was the baseball player?
36:33
[SPEAKER_01]: We said his car's Cheeria, his car's soul for more when he was 19-year-old and double-ed.
36:39
[SPEAKER_01]: And when he won the World Series.
36:40
[SPEAKER_01]: Now, I think that's going to transition and trend upward over the next couple of years.
36:45
[SPEAKER_00]: Doing more before he debuted and he had literally a top rookie season of All Time, his car's new list.
36:50
[SPEAKER_01]: Yeah, so again, and that goes to show you that gambling.
36:55
[SPEAKER_01]: is what drives the sports club.
36:56
[SPEAKER_00]: So why even gamble on the top?
36:58
[SPEAKER_00]: Your gamble is buying.
37:00
[SPEAKER_00]: Jarlan Susanna for $4.00 for a base auto and it or Missarowski, Missarowski's your gamble.
37:06
[SPEAKER_00]: You gamble on a pitcher who threw hard and you bought his purple auto for 20 bucks and now it's doing 25 bucks.
37:13
[SPEAKER_01]: Well it's like you either play in the big pond on the big players and you stay quick with them because everybody wants to get them but I think you're going to see a transition in the days ahead especially with the lockout and all the stuff going on.
37:26
[SPEAKER_01]: People are going to be less likely to buy the big-name guys because their values do not hold up through Where it's the deeper dives the guys that you bought at fifty dollars that go to five hundred dollars.
37:40
[SPEAKER_01]: It's the Caleb Bonhamers Yeah, it's guys like that on the on the bone inside the miserable skis It's the guys like that the problem is when the market gets so flood everybody's looking for the next guy that everybody becomes the next guy
37:53
[SPEAKER_00]: And that's not sustainable no and it's fun.
37:55
[SPEAKER_00]: We were talking about it like Connor Griffin.
37:57
[SPEAKER_00]: Let's just say You know, he won world series.
38:01
[SPEAKER_00]: He got a batting title and he Plays great in MLB.
38:06
[SPEAKER_00]: He'd have the same stats as trade Turner.
38:08
[SPEAKER_00]: He'd have the same accomplishments as trade Turner and Connor Griffin's hard It's did 20 times more than a hundred percent
38:15
[SPEAKER_01]: 100%.
38:15
[SPEAKER_01]: So, final kind of thought of the episode.
38:18
[SPEAKER_01]: And again, Tarlas, and there's a pretty shit you guys tuning in with us as always your questions, your feedback, you know, the follows on Instagram and so sure whatever is super helpful for us.
38:27
[SPEAKER_01]: We love talking about this obviously, this is just a chance for us.
38:30
[SPEAKER_01]: These are the conversations we have every day, just inviting you in.
38:33
[SPEAKER_01]: Next week, Bubba and I are going to be on talking about business and how we
38:37
[SPEAKER_01]: handle adversity.
38:38
[SPEAKER_01]: I did talk to Kern this week.
38:39
[SPEAKER_01]: He said that he wants to jump on soon and talk about Jen one and excited to do that.
38:44
[SPEAKER_01]: So just be advised, as we told you as we headed into season three, you're going to be a little bit of a different schedule, not all of us on at the same time, but we're still moving forward with, you know, providing great content for you guys and I appreciate you tuning in.
38:56
[SPEAKER_01]: So final thought of the day, somebody asked you, Matthew, what AI tools
39:04
[SPEAKER_01]: Just expose my secrets, huh?
39:07
[SPEAKER_01]: That you said you wanted to talk about it.
39:09
[SPEAKER_00]: Yeah, I mean, if you want to make money in sports cards, you can make money however you want, but you can increase your profit using AI.
39:15
[SPEAKER_00]: Let's just put that out.
39:16
[SPEAKER_01]: It's a research tool.
39:17
[SPEAKER_00]: It knows a resource that if you want to increase your profit, you should use it.
39:23
[SPEAKER_00]: It helps time and money.
39:24
[SPEAKER_00]: And it's an example of how it helps through my time.
39:26
[SPEAKER_00]: So,
39:27
[SPEAKER_00]: All I have to do, used to, I want to cheat a card for someone.
39:30
[SPEAKER_00]: I have to type it out, look at the thing.
39:32
[SPEAKER_00]: It takes a while to cheat cards.
39:33
[SPEAKER_00]: Like, people that cheat cards, you all know it's pain.
39:36
[SPEAKER_00]: I can snap three pictures in the AI.
39:38
[SPEAKER_00]: Can you cheat these using this format done?
39:40
[SPEAKER_01]: No.
39:41
[SPEAKER_00]: In a minute.
39:43
[SPEAKER_00]: And all I do is copy, paste, put it on a sheet.
39:45
[SPEAKER_00]: Fine.
39:46
[SPEAKER_00]: And that is literally an hour time saver on, you know, if it takes a minute of a card, that's literally.
39:52
[SPEAKER_01]: So AI can perform tasks that save you time, which allow you more time to be able to do the things that you need to do that make you money.
40:03
[SPEAKER_01]: So it's efficiency tool.
40:04
[SPEAKER_01]: The second piece of AI is research.
40:07
[SPEAKER_01]: Yep.
40:07
[SPEAKER_01]: So if you're looking at, hey, can you pull the, you know, population price?
40:13
[SPEAKER_01]: Yeah.
40:13
[SPEAKER_01]: So this market research that we just did here, you know, that was all done just by card ladder and whatever.
40:19
[SPEAKER_00]: So what I've done, this is like I don't plan to share this on the show before, but
40:23
[SPEAKER_00]: I've been trying to find cards that fit in a certain standard, which is basically...
40:30
[SPEAKER_01]: So think about price.
40:31
[SPEAKER_01]: The way I want to explain this is it's about price ranges.
40:33
[SPEAKER_01]: So when you're looking for value, if a PSA 10 does this, a PSA 9 does this, a PSA 8 does this, and a 7 does this, and then you compare those populations against the price range.
40:45
[SPEAKER_01]: What does that mean?
40:46
[SPEAKER_01]: Exactly.
40:47
[SPEAKER_01]: You're looking for inefficiencies in the market based on population and price jobs.
40:52
[SPEAKER_00]: So an example is the 2023 prism, Victor Wemignoma Blue.
40:56
[SPEAKER_00]: There is a 60% PSI 10 rate versus PSI 9, so I think it's 50 PSI 9's in like 77 PSI 10's.
41:04
[SPEAKER_00]: The PSI 10 does three times more than the 9 when it's not as rare, so it should be like a 2x difference.
41:11
[SPEAKER_00]: Since it's a high gym rate, but there's a three X difference.
41:14
[SPEAKER_00]: And I did all that.
41:15
[SPEAKER_00]: I literally said, can you find me cards with the three X difference that has over 50% in gym rate pumped out 10 cards like that?
41:21
[SPEAKER_00]: And I went and bought a couple of the cards that I'm on that list.
41:24
[SPEAKER_01]: So you start to understand inefficiencies in the market.
41:26
[SPEAKER_01]: You're using it as a research tool.
41:28
[SPEAKER_01]: And all it does is just gather information and it presents you with information.
41:32
[SPEAKER_01]: The danger is when you start
41:35
[SPEAKER_01]: getting predictive.
41:36
[SPEAKER_01]: So I would say, don't use AI to come up with strategy.
41:41
[SPEAKER_01]: You analyze the data and you be the brain behind the strategy.
41:44
[SPEAKER_01]: And this is, you know, whether it's, you know, if you're sports betting or, you know, cards or whatever, like you have to make the decision, but use AI for information gathering or whatever, like I am in a survivor pool for football this year.
42:01
[SPEAKER_01]: And I've been feeding our survivor spreadsheet into AI each week, and I've been saying hey, based on who's already selected what?
42:11
[SPEAKER_01]: What teams are most likely to be chosen this week?
42:14
[SPEAKER_01]: And I'm kind of picking against the field and the field went from 1700.
42:19
[SPEAKER_01]: We're down to that 27 entrance now.
42:21
[SPEAKER_01]: And so it's just a utilization of the AI tool for the simulation of information.
42:28
[SPEAKER_01]: So that's enough on that.
42:29
[SPEAKER_01]: I think it is useful.
42:30
[SPEAKER_01]: You know, there's AI tools now that are basically scouring the internet for listings.
42:36
[SPEAKER_01]: They're scouring.
42:38
[SPEAKER_00]: I mean, I know my, my baseball coach last year had a AI tool that literally would find he literally would just put in cards that are he would put in card, card letter information and find cards that are at less than 50% of value with less than 10 minutes left.
42:53
[SPEAKER_00]: Any player he put an end round Anthony $20 card sitting at four bucks by the eight bucks and AI did all of that for him because it was just an algorithm that he put in so things great money to be made Yeah, just just opportunities on how it it helps you so well, that's it man for today's episode Go math like that was really
43:11
[SPEAKER_01]: solid, a lot of good information there.
43:13
[SPEAKER_01]: Again, just invite you guys in the conversation about what we talk about, what things look like in Ham House and how we navigate this duality between being collectors and, you know, being investors or businessmen in the sports card space.
43:25
[SPEAKER_01]: So we appreciate you guys tuning in to the sports card CEO.
43:28
[SPEAKER_01]: Until next week, peace.