Younger generations are exploring nontraditional investments like buying a Birkin bag or collectibles as a way to make money. Influencer Logan Paul believes these investments can be more meaningful than traditional options like the stock market. Paul recently bought a rare Pokémon card for $5.3 million, which he plans to auction for $7 million to $12 million in early 2026.

Collectibles like wine, vintage cars, and rare art can produce a “reasonable” return for investors, but don’t offer the same long-term gains as stocks. Between 1900 and 2012, collectibles had a 6.4% nominal annual return and a 2.4% real return. Despite lower returns, some investors find value in these items.

Gen Z men are turning to collectibles like Pokémon cards, which have seen a 3,261% increase in value over the past 20 years. Pokémon cards have outperformed Nvidia stock and the S&P 500, with a 46% increase in one year. The trading card hobby is evolving with technology, innovation, and nostalgia, attracting a new era of collectors.

Investing in collectibles can lead to big paydays but also carries risks like liquidity, concentration, costs, and potential bubbles. Some people make regular income buying and selling collectibles, but fortunes are tied to market trends. While collectibles can outperform in the short term, the stock market tends to increase in value over time.

Read more at Yahoo Finance: ‘Don’t be afraid to take a risk’