Have you ever dreamt of owning a piece of Hogwarts, Winterfell, or even the Land of Oz? If so, you’re not alone. Fantasy stocks are a hot topic among investors who are willing to take chances on unreal companies.
But what are fantasy stocks, and how do they work? In short, fantasy stocks are investments in fictional businesses or imaginary worlds. Think of it as investing in something that doesn’t exist physically, but only in the make-believe world of books, movies, and TV shows.
So, how do you purchase something that’s imaginary? The answer is simple – it’s all about licensing. Media and entertainment companies license their intellectual property – characters, stories, and the worlds they inhabit – to produce merchandise and products. When you invest in a fantasy stock, you’re essentially investing in a company that has a license to sell products associated with a specific intellectual property.
For instance, if you want to invest in Harry Potter, you could look up Warner Bros. Entertainment, the production company that owns the rights to the franchise. Keep in mind that buying shares in Warner Bros. doesn’t mean that you own Harry Potter. Instead, you own a piece of the company that owns the rights to the franchise. The success, or lack thereof, of future Harry Potter merchandise and spin-off movies would affect the value of your investment in Warner Bros.
But why invest in fantasy stocks? Well, the answer is simple – people love stories and characters. When you invest in a fantasy stock, you’re investing in the popularity of a specific book, movie, or TV show. If a franchise is popular or has a cult following, the merchandise that is sold could create a lot of revenue.
For example, Star Wars is a massive film franchise that has spawned countless merchandise, from lightsabers to lunchboxes. Disney, the current owner of the franchise, has made billions of dollars from the sale of Star Wars merchandise. If you had invested in Disney’s stock when it first acquired the Star Wars franchise in 2012, you would have enjoyed a 280% return on investment.
It’s important to note that fantasy stocks are not for everyone. Investing in fantasy stocks is a speculative game. While some franchises enjoy long-term success, others do not. Past performance doesn’t necessarily predict future success. That means, investing in the next Harry Potter story or Game of Thrones prequel could be a risk.
Additionally, fantasy stocks are not as closely watched or analyzed by financial analysts as traditional stocks. Companies that deal with imaginary worlds might not have a physical product, but they still have to face real-world issues like licensing fees, royalties, and copyright lawsuits.
Despite that, investing in fantasy stocks can be a fun and exciting way to participate in something you’re passionate about. For instance, have you ever considered buying shares in the Walt Disney Company? Disney owns multiple popular literary and entertainment franchises, including Star Wars, Marvel, and The Lion King.
Some other companies that offer fantasy stocks include Activision Blizzard, the creator of the Warcraft and Overwatch video games, Netflix, which produces popular series like Stranger Things and The Witcher, and Hasbro, the toy company behind Transformers, My Little Pony, and G.I. Joe.
To wrap it up, investing in imaginary worlds is possible, but it’s a game that carries risks. While it can be an exciting way to participate in fandom, it’s important to research the companies behind the fantasy stocks you’re interested in and keep a close eye on your investments.
In closing, fantasy stocks offer an exciting opportunity to be a part of something that you love, but it’s essential to treat it like any investment and do your research. You could own part of your favorite imaginary world and, who knows, maybe even profit from it. Just remember, risk comes with the game of investing, even with fantasy stocks.