Collectable CEO Ezra Levine speaks with Boardroom about fractional investing and how his company leverages the benefits of fractional ownership.
Fractional investing is exactly what it sounds like. It’s an investment class that allows consumers to purchase a fraction of a given asset, which could be anything from a stock to a rare baseball card.
With collectibles that sell for millions on the open market — think sports cards, signed jerseys, first-generation technologies, etc — fractional investing could be a simple alternative to outright ownership, allowing collectors to own a piece of the rarest items of our time.
In its quest to bring fractional investing to portfolios everywhere, Collectable is working to educate investors and show collectors the benefits of fractional ownership. The company developed a fractional investment platform that lets users buy, sell, and trade rare collectibles. Boardroom talked to Collectable CEO Ezra Levine about what fractional investing is and why fractional ownership can be beneficial.
“It’s just like any other investment when you buy shares of a public company,” Levine said. “You’re buying equity or shares into something you might not otherwise be able to afford or have access to.”
For example, if a single stock costs $100 and you’re only willing to purchase $20 worth of it, your fractional investment will get you one-fifth ownership of that stock. Regarding collectibles, Levine said fractional investing applies the same way.
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Fractional Investing in Collectibles
The obvious benefit of fractional investing is that it allows a larger group of investors to participate. This type of investing can also help collectors diversify their portfolios and offer more liquidity opportunities.
Most collectibles on Collectable’s platform are “iconic, rare, or of high-value,” Levine said. Fractional investing benefits investors who are looking to purchase high-quality and authenticated collectibles at an affordable price point.
“Fractional investing is the easiest, most frictionless on-ramp into the amazing world of collectibles,” he said. “Within minutes, you can become an owner of some of the most amazing artifacts in the world at affordable share prices and without any of the pain points of storage, insurance, maintenance, authentication, shipping, etc.”
Nostalgia, passion, an attachment to history, culture, and community, are some of the main perks Levine named when it comes to fractional investing as opposed to other investment types. Collectibles in the fractional investment realm are often pieces of history and culture that correlate with relevant eras, moments, and public figures.
“It’s tremendously fascinating and gratifying to feel a deeper connection, understanding, and attachment to history and culture through collectibles ownership,” Levine said. “Very few, if any, other investment assets provide these kinds of pleasures along with potential financial rewards.”
One thing collectors and investors may be thinking about is where the collectibles live. For most services like this, collectibles are insured and stored away in top-secret vaults under temperature-controlled environments. Collectable is fully SEC-regulated, which provides an extra layer of trust, security, protection, and transparency for collectors on its platform.
“Oftentimes, new collectors’ first experience the world of collectibles through fractional ownership and then become hooked to collect physically, too,” Levine said. “We’re bringing the collectibles asset class to everyone in creative and fun ways.”
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