At the time, we were watching yet another “can’t-miss” investment trend explode across social media.
Nope… not crypto.
It’s Pokémon.
A small piece of cardboard with an imaginary electric mouse on it, selling for life-changing money, sounds absurd until you hear the stories behind it.
One collector spoke about owning an Ishihara Pokémon card, issued for Tsunekazu Ishihara’s 60th birthday.
He paid around $100,000 for it because he felt he had “missed out”. Five years later, he was getting unsolicited offers of $400,000 to $500,000—and believed it could be worth seven figures.
Four hundred years ago, people were paying fortunes for tulips. Today, it’s Pokémon cards.
In between, we’ve had Beanie Babies, stamps and rare coins—each one, for a moment, felt like the smartest place to put money.
It’s not really about tulips, though. It’s about Pokémon cards selling for the price of a mansion. It’s about us.
Then comes the story. Childhood nostalgia. Scarcity. Status. “Only one perfect card exists.” Suddenly, it isn’t cardboard anymore. Its identity is in a plastic case.
Our brains are wired for contrast. Pokémon… and £1 million? That’s not just unusual—it’s irresistible.
You click. You read. You wonder if you’re missing something.
Charles Mackay saw this pattern long before any of us: “Men… think in herds… they go mad in herds.”
And if you look closely, the mechanics haven’t changed at all.
But here’s the quiet problem: there are no fundamentals.
A business generates profits. A property earns rent. You can run numbers, estimate value, and build a case.
But a Pokémon card? It doesn’t produce anything. No cash flow. No yield. No spreadsheet can tell you what it’s worth.
The price is simply… what someone else will pay.
And that “someone else” is driven by something far less stable than numbers—feelings.
Stories, really.
It’s not just a card. It’s childhood nostalgia. It’s a rarity. It’s identity. It’s the whisper in your ear that says, “If you don’t buy it now, you’ll never get the chance again.”
And then there’s the most powerful hook of all: completion.
Anyone who’s ever tried to finish a sticker album or a collection knows the feeling. When you’re 90% done, the last few pieces stop being rational purchases. They become necessary. You pay more than you should—because finishing the set matters more than the price.
None of this makes collecting Pokémon cards foolish. Not at all. Hobbies are allowed to be emotional. They’re supposed to be.
But problems start when we confuse a hobby with an investment.
Because in a market driven by stories, status, and social identity, there’s no anchor. No floor. No way to say, “This is cheap” or “This is expensive.” Only, “This is popular right now.”
And popularity is a fragile thing.
But when a hobby gets mistaken for an investment, things get slippery.
A toymaker lost $4.5M in Pokémon cards during the Palisades Fire in California.
Thankfully, he had insured many of them.
Howard Marks once said that people forget financial lessons quickly—especially when easy gains are on the table. Add a bit of hype and a dash of FOMO, and rational thinking quietly slips out the back door.
So how do you avoid it?
Not by avoiding risk entirely—that’s impossible. But by shifting your focus. Instead of chasing what’s rising, ask what’s lasting. Instead of stories, look for substance. Cash flow. Utility. Something that works even if no one is watching the price.
It’s less exciting, admittedly, like choosing a steady meal over dessert. But it keeps you grounded.
And maybe that’s the real edge—not predicting the next big thing, but staying rational when everyone else isn’t.
Because in the end, speculation isn’t just about markets. It’s about behaviour. About knowing when the crowd is running—and having the patience to walk.
And if you ever find yourself caught up in the excitement, it might be worth pausing for a second and asking:
Am I investing… or just hoping someone else will?
If no one wanted to buy this from me tomorrow, would I still be glad I owned it?
At the end of the day, investing is an art, and you can make or lose money speculating.
Awet Ghirmay, Head of Investment Research
If you want to learn more about this topic, please find the link here.
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Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
