Everyone knows LEGO, the children’s toy that inspires creativity and design. The brand is one of the longest-running children’s toys on the market, consisting of sets of bricks and instructions that result in some fascinating creations.
Given the company’s long-standing success, many investors would jump at the opportunity to buy LEGO stock.
Here’s what you need to know about LEGO stock, investing with the company as well as competitor stocks worth considering.
LEGO Stock: A Brief History of The LEGO Group
Founded in 1949, The LEGO Group actually started over a decade earlier with their original designer, the Danish carpenter Ole Kirk Christiansen. In 1932, Christiansen began making wooden toys in his town of Billund, Denmark.
As he saw success, he officially named his company LEGO. The name came from the Danish phrase leg godt, which translates to “play well”.
In 1947, the brand began producing plastic toys in addition to their traditional wooden products.
During their second year, these plastic toys grew in popularity. And in 1949, the first modern LEGOs were released.
These were the first version of the plastic bricks we are familiar with today, originally dubbed “Automatic Binding Bricks”.
It didn’t take long for this new design to see success. And under the direction of Christiansen’s son, Godtfred, marketing for the plastic toys changed.
Godtfred saw the potential to present the toy as one that inspires creativity and fosters learning, appealing to both parents and kids alike.
Before the toy could move any further forward, a few things had to be taken into consideration. At the time, the toy didn’t interlock diversely enough, and the company decided to improve upon the design.
Over half a decade of research and development later, the first modern LEGO brick set was made available in 1958.
The company improved the overall brick design and material used, making them reliable and strong.
And these original designs are still the ones being used in today’s sets.
LEGO Stock: Branching Out
With the success of the modern LEGO brick, The company extended its reach in the market, with new sets made specifically for a younger audience.
In the late 1960s, the company introduced a bigger brick for less coordinated hands called Duplo.
These larger bricks allowed for easier stacking and were targeted at toddlers.
To stand out from the crowd, LEGO went even further in the 1970s and began producing the mini-figures that helped put them on the map.
Minifigures are the figures included in sets that represent people, animals, and robots. They have become a necessity in many sets and an item that collectors seek as much as they do full sets.
In addition to creating new products, LEGO began creating partnerships with other companies and franchises, making them even more popular.
The original themes of LEGO sets were simple but effective: sets included pirates, space, and the wild west themed products.
Due to the popularity of the toy, partnerships with franchises emerged.
These partnerships include huge names in pop culture, including Star Wars, Minecraft, and Harry Potter.
With these collaborations came the opportunity for more products than just the building sets.
Video games based on the LEGO sets in the Star Wars and Harry Potter series were produced and saw massive success in the video game industry.
LEGO Stock: Highly Collectible
As with anything popular, where there is demand there will be a market for collectibles. LEGO sets are no different.
In fact, there are entire websites dedicated to tracking the value of LEGO sets and individual pieces, with fully operational marketplaces allowing you to buy and sell these items.
However, as new partnerships come into play, new sets are developed and released, and old sets stop being produced.
Of course, because they are only offered for a limited run, the demand goes up, and kits that are now discontinued become heavily sought after.
As an example of this, we can look at the Millenium Falcon kit produced in 2017 for the Star Wars franchise.
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During production, the kit sold for $799.99 from LEGO and retailers.
Now, nearly four years later, the value of the kit in new condition has appreciated to almost $1,100 and will continue to appreciate as time goes on.
Experts can track the value of these sets and measure trends to see where the set’s price will rise and fall. When an updated version of a set is released, the previous version’s price drops.
If you’re looking to snag a 2017 Millenium Falcon, keep your eyes peeled for an updated kit, and the 2017 price should fall.
While you may not be able to invest in LEGO stock, its collectors market can prove to be valuable for investing if you can accurately predict pop culture trends.
Can You Buy or Sell Lego Stock?
While there is a ticker on the NASDAQ labeled LEGO, it is not for The LEGO Group, rather, it is for the Legato Merger Corp.
The LEGO Group is not publicly traded, as it remains a privately held company.
Sadly this means that you cannot buy or sell LEGO stock, and you won’t see a ticker symbol if you check the stock market. Maybe one day, you will be able to grab some shares for your portfolio.
Also, there is no news on whether an IPO will happen in the near future.
This is a shame because if the company ever decided to go public, the price of its shares would have exceptional value.
Can You Buy LEGO Stock: Who Owns LEGO?
KIRKBI A/S (a private holding and investment company) owns The LEGO Group. And the Kirk Kristiansen family, who holds about 75% of the company, owns KIRKBI A/S.
The LEGO Foundation owns the remaining 25%. It is a company dedicated to creating sturdy building blocks that can stand the test of time. Their motto is “learning through play”.
LEGO Stock Price?
At this point, there is no available stock price for The LEGO Group, due to the company being privately owned.
Until the company has an IPO and becomes publicly traded, there will be no accurate price for their shares. Though the price for the shares would certainly be worth a lot.
Can You Buy LEGO Stock: How Much is LEGO Worth?
As of 2021, it is estimated that The LEGO Group is worth nearly $6 billion.
During the COVID-19 pandemic, sales of LEGO sets surged, allowing the revenue for the company in 2020 to reach $2.1 billion alone, surpassing that of competitor Mattel.
Can You Buy LEGO Stock: LEGO Competitors You Can Invest In
In the toy-making industry, there are several competitors of LEGO that you can invest in while the company remains privately owned.
Bandai Namco Holdings (OTCMKTS: NCBDY)
Bandai Namco is a Japanese video game development company that has branched out into the plastic model world in more recent years. In addition to games, the company makes premium model sets.
While they do not produce model kits like the LEGO brand does, they do share a similar approach in terms of their partnerships.
Bandai Namco owns the rights to the Mobile Suit Gundam franchise, a wildly popular animated series centered around advanced robotics.
As part of this franchise, Bandai Namco produces plastic model kits that are accurate to the characters found in the Gundam series. In addition to the Gundam franchise, Bandai Namco has paired with Star Wars to create movie-accurate model kits.
With the resurgence of Star Wars media, kits based on new and old IPs are highly sought after and are rather expensive, as most Star Wars memorabilia can be.
The current stock price for Bandai shares for $33.42 per share.
Mattel Inc. (NASDAQ: MAT)
One of the longest-running toy-making companies in the U.S., Mattel is one of LEGO’s top competitors. In fact, the Mattel brand is the second-largest toymaker in the world — only second to LEGO.
The company currently comprises three different business segments; Mattel North America, Mattel International, and American Girl. Mattel is home to some of the most iconic brands in history, including Barbie, Hot Wheels, and Masters of the Universe.
Barbie and Hot Wheels are highly collectible, just like LEGO sets and pieces are, and create a market of their own in collectors’ circles.
The current stock price for Mattel shares is $21.91 per share.
Hasbro, Inc. (NASDAQ: HAS)
Hasbro operates within many industries, including entertainment, media, and board games. The company has also acquired board game makers, such as Parker Brothers and Milton Bradley.
Some of the more popular brands under the Hasbro umbrella include Transformers, Power Rangers, Nerf, Monopoly, and Furby.
Notably, Hasbro also owns Wizards of the Coast, the company responsible for the popular trading card game Magic: The Gathering and Dungeons and Dragons.
The current stock price for Hasbro shares is $99.65 per share.
Funko (NASDAQ: FNKO)
Funko touches on all generations of popular culture, producing vinyl figures with likenesses to thousands of characters in hundreds of franchises.
Franchises range from properties that include Betty Boop and The Cat in the Hat all the way up to current pop culture icons such as the heroes of the Marvel Cinematic Universe.
Rarity comes to play in the desirability of Funko figures, with some being harder to find than others. This rarity lends itself to higher aftermarket prices once the run of figures has ended, much like the price of LEGO sets that have been discontinued tend to skyrocket.
The current stock price for Hasbro shares is $19.38 per share.
LEGO Stock: Final Thoughts
The LEGO Company brand is dedicated to helping others find their creativity while they learn.
While you cannot buy LEGO stock today, there are plenty of competitor stocks available.
As the company has produced more and more sets and discontinued older sets, the highly sought-after kits have made a small market for themselves.
As the world’s largest toymaker, and certainly the most popular one, if the company goes public one day, you can expect the price of shares to be remarkably high.
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