Can We Invest in Lego Stock?

Lego does not only refer to the manufacturer of this well-known toy: it has also become a type name because the toy made by the manufacturer is also called Lego. Do you want to invest in Lego?

The LEGO brand is one of the most popular brands globally, but is lego stock publicly traded? After being headquartered and established in Denmark, thousands of potential investors have wondered if LEGO would become a publicly-traded company. In this post, we will answer all of your questions about the LEGO company.

No wonder investors are trying to invest in Lego stock after Lego collectors achieved great returns collecting Lego sets. In fact, they were even superior to some large-cap stocks, bonds, and gold, between 1987 and 2015. Lego is a Danish iconic brand. 

Its products inspire not only the young but also grown-ups who compulsively collect all of their products and showcase them proudly. We’ll look at some of the important factors that have helped Lego create an iconic brand that is instantly recognized across generations.

What is the Lego Group?

The Lego Group is a privately owned toy, video game, and film manufacturer. It is most well-known for its bricks. In 1932, Ole Kirk Christiansen created the company. In addition to toys, the firm has produced many films and popular video game series based on licensed properties. The corporation has offices in Billund, Denmark; Lausanne, Switzerland; London; Milan; Munich, Germany; Paris; Shanghai; and Singapore; and employs 18,000 people.

In 2015, it was the third-largest toy manufacturer in the world. A group of investors led by Kjeld Kirk Kristiansen purchased the company in 1987. It is now the largest toy firm in the world, producing more money than Disney.

Lego provides Duplo construction sets for children and other products under the Lego brand. It also maintains a popular line of themed collections for young children and adults based on movies and television series.

The Lego Group has expanded its product line beyond simple bricks to include playsets and action figures. In addition to Billund, Denmark, and Enfield, Connecticut, industrial design work is currently performed by Lego, which originated as a manufacturer of wooden toys.

As of the end of 2017, Lego runs 36 retail outlets and publishes books and video games. In 2001, the corporation entered into a license agreement with Walt Disney Company, and the two companies share ownership of Legoland Billund.

Lego became the world’s largest toy maker by revenue in 2005, a position Mattel did not surpass until 2018. According to analysts, Mattel stock has been one of the best stocks for years. This led observers to believe Logo might go public, but this never occurred (a similar scenario would happen to Instagram stock a few years later).

The Lego Group has left its impact on the world, and its future prospects are promising. As long as children conceive of other worlds, Lego will always have a place in the world.

History of the Lego

In 1932, Ole Kirk Christiansen created the company. In its first year of operation, the company sold 3,878 units. In 1934, Christiansen purchased a vehicle to deliver his wares from the plant to the closest train station. Later, in early 1947, Lego constructed its first plastic injection molding machinery; in 1949, the company began manufacturing plastic toys and has sold over 400 billion plastic pieces since then.

In 1968, the company became a part of GKC, a manufacturer of toys. With the introduction of Lego Computer Games in 1986, they were able to create their video games. Later, in 1990, they bought a 20% share in Merlin Entertainment, which was subsequently renamed The Tivoli Group. Currently, they have locations in over 130 countries.

Why is the Lego group important?

LEGO has shown no signs of slowing down despite the company being over a century old. Forbes named the company #92 on its list of the world’s 100 most valuable brands for 2020.

The Lego Group has outperformed the overall toy industry since 2017, and this trend is anticipated to continue.

We can credit LEGO’s recent growth rate to the COVID-19 pandemic in addition to its popularity. With families quarantined and spending the most of their time at home, they required activities, and they discovered something! Playing with LEGOs and constructing LEGO models are enjoyable pastimes.

The Lego Group’s consumer base grew by 14 percent in the first half of 2020, while its gross income grew by 7 percent. In addition, the company’s operating profit increased by 11%.

Additionally, the group has indicated that it will invest up to $400 million in sustainability initiatives.

A summary of the toy business

The toy sector has experienced consistent growth over the past few years. The popularity of children’s television programs such as Dora the Explorer and Mickey Mouse Clubhouse has increased toy sales. As new manufacturers enter the toy market, competition is intensifying, and there is nonetheless still an opportunity for inventiveness.

As new producers enter the market, the toy sector is becoming more competitive. There is nonetheless still an opportunity for inventiveness. Technology is one of the most prominent trends in the toy industry. Apps for smartphones are being used to sell new toys, children may play with digital toys, and the popularity of electronic toys is growing. Cultural diversity is another development that has been gathering momentum.

Toymakers are competing to produce the next popular toy. They desire to build a toy that will be in demand for a number of years by capitalizing on trends in children’s television. As a result, the toy sector is constantly seeking new methods to innovate. Toy stocks trailed only TaaS stocks in terms of market growth in 2021.

The creation of eco-friendly children’s toys is one approach to innovation in the toy industry. The toy business has attempted this in the past without success. This is because parents are unwilling to pay more for an eco-friendly toy if they are already spending a few bucks on it.

The toy sector should note the accomplishments of children’s eco-friendly clothing makers. These companies have discovered a method to increase the desirability of eco-friendly clothing by making it seem better and more trendy. Additionally, this should be considered by the toy industry.

Consider collaborating with an eco-friendly company to make your business more innovative. You may also want to consider enhancing the appearance of your toys by adding color or making them more stylish.

Can you invest in Lego stock?

Unfortunately, you cannot currently buy or sell Lego stock.

It is a private firm that is not publicly traded on a stock exchange.

While there is a LEGO ticker on the NASDAQ, it does not represent The LEGO Group; rather, it represents Legato Merger Corp.

Unlike many successful toy companies, LEGO Group is privately held and not publicly traded.

This means that LEGO stock cannot be purchased, and there is no ticker symbol on the stock market.

Perhaps one day, you will be able to add shares of the toy manufacturer to your portfolio.

What is the stock symbol for LEGO?

Due to the fact that Lego shares are unavailable to the general public, there is no stock symbol.

Despite the fact that LEGO would be a fantastic logo for the toy company, it is already in use by another company.

What is the stock price of LEGO?

Lego is still privately owned by the company’s founder’s family.

Private firms are not issued a stock price or ticker symbol.

If Lego went public, its stock price would be comparable to or higher than that of its nearest competitors.

However, it is difficult to predict the Lego stock price. It’s also a good bet that we will never find out, as Lego shares will likely remain securely in the hands of the family that has claimed this product since its inception. This is unfortunate for investors, but such is life. As previously indicated, you can always invest in similar products.

We are aware of this company’s worth and sales, though. We know that Lego’s revenue in 2016 exceeded $15.5 billion and its operating income was over $4.5 billion, and that year truly experienced a significant loss. They invest substantially in advertising and building the brand, not to mention the construction of Legoland, the production and promotion of Lego films and video games, and everything else they do.

When will the Lego group go public?

There is no information regarding whether or not the company will go public.

Kirkbi A/S, the founder’s family’s holding, and investment business, hold approximately 75% of LEGO’s stock. The remaining 25%, meanwhile, is controlled by The Lego Foundation. The Lego Foundation is a non-profit organization whose mission is to encourage children to be creative, involved, and lifelong learners.

The vice chairman and chairman of the board are named Kjeld Kirk Kristiansen and Thomas Kirk Kristiansen, respectively. Both are the grandson and great-grandson of Ole Kirk Kristiansen, the company’s founder.

The Kristiansen family effectively controls the entire business with its holding and investment firm and charitable foundation. Unless an extraordinary occurrence occurs in the future, it is difficult to imagine the Kristiansen family relinquishing even a little amount of power.

How to invest in Lego?

Investing in Lego collectibles

Since we cannot invest in Lego stock, the next best option is to acquire Lego collectibles. Thousands of Lego collectors attempt to amass as many Lego sets as possible across the globe. Surprisingly, this has become one of the best investments collectors and investors can make. Some Lego sets have significantly increased in value and continue to be in high demand.

Without question, collectibles are typically excellent investments. However, they do not provide cash flow, and certain collections can be extremely illiquid, and this indicates that it may be challenging to sell them quickly.

While LEGO remains privately held, there are other competitors in the toy manufacturing market in which you might invest. These rivals are also terrific companies with well-known toy brands.

Mattel Inc (NASDAQ: MAT)

Mattel, Inc. is a worldwide toy and board game business headquartered in El Segundo, California, United States. It was founded in 1945. Among the company’s offerings is the popular Barbie doll.

Mattel is the world’s largest toy manufacturer by revenue and the second-largest by units sold (after Lego). Mattel purchased the Canadian video game maker Ludia Inc. in 2017, and one year later, it recruited Margaret Margo, a Google executive, as its CEO.

Mattel produces various additional brands in addition to toys and games, including Fisher-Price. It operates through the North America, International, and American Girl Brands business segments. The tagline of the company is “We Create the Future.”

Mattel has a lengthy history of producing some of the most successful and recognizable toys in history. Their toys have been on store shelves for centuries, from the first Barbie through Hot Wheels and Matchbox. In addition, they follow contemporary fashion by releasing new brands such as Monster High and American Girl Dolls.

Mattel’s stock (NASDAQ: MAT) has increased by 23% over the past five years, and many analysts believe it is currently one of the finest stocks to purchase. They’ve accomplished this by boosting their North American division’s global sales by 18 percent. And they’ve accomplished this by increasing their marketing efforts for products such as Monster High dolls and American Girl dolls. Its rise has been mostly driven by its goods’ capacity to inspire creativity in children.

Hasbro (NASDAQ: HAS)

Hasbro is a global leader in the children’s and family leisure entertainment business. It is the largest toy manufacturer in the world, with around $5.12 billion in annual revenue.

When you think of Hasbro, iconic games such as Monopoly likely come to mind first. However, they have evolved into much more than only board games. They produce hundreds of toys and activities, such as Play-Doh and Littlest Pet Shop.

Traditional toys and games manufactured by Hasbro include Monopoly, Twister, Mr. Potato Head, Yahtzee, Tonka, Play-Doh, and My Little Pony. Digital entertainment items include NERF blasters and Ouija; DVD and Blu-ray movies. Characters from brands such as G.I. Joe, Mickey Mouse, and Transformers are featured in children’s books and gear.

The corporation has its headquarters in Pawtucket, Rhode Island. Their items are distributed through a variety of channels, including mass merchandisers, department stores, toy wholesalers, club stores, and the Internet. In addition to generating both original and licensed material, the company promotes its brands through television and film. Additionally, the company creates family entertainment projects under license agreements with third parties, including Universal Studios, Disney Films, and Paramount Pictures.

Jakks Pacific (NASDAQ: JAKK)

American toy manufacturer headquartered in El Segundo, California. It has two operating divisions: Jakks Pacific, which produces toys for the North American and international markets, and JAKKS Australia, which produces toys for the Australian market. Jack Kahl launched the company in 1947 after creating the teddy bear Raggs.

Jakks Pacific is one of the world’s largest toy manufacturers, with annual sales exceeding $1 billion. The company designs, manufactures and distributes a wide range of items under internationally recognized brands, such as Disney Princess, Angry Birds, SpongeBob SquarePants, Mario Bros., Hello Kitty, Pok√©mon, Barbie, Hot Wheels, and Fisher-Price Thomas & Friends.

Jakks is a toy and game manufacturer that has been in business for more than four decades and has sold more than 1.5 billion goods. China, Vietnam, and Mexico are among the nations where the corporation operates factories. With new talent like Olivia Munn on board, this might be an amazing opportunity to penetrate a whole new market segment.

Jakks Pacific was established in 1995 by the British toy manufacturer Jakks Shore. Jakks began as a tiny company with ten employees in California. Over time, it has expanded to employ more than 1,700 people worldwide. In 2021, its revenue exceeded $1 billion.

Conclusion

LEGO has existed for just over 70 years and is still one of the most well-known toy manufacturers in the world. Throughout its history, LEGO toys have faced a number of obstacles, but they continue to be a popular product today.

The corporation adjusts to shifting market conditions, such as virtual competition from Minecraft and Roblox. There is no way to ensure the LEGO company’s success in the future, but it appears that they will remain relevant for decades to come, just as they have since the 1950s.

LEGO may continue to be inspired by innovative toy manufacturing concepts in the future. It is terrible that Lego stock cannot be purchased. Lego remains a privately held firm, and it does not appear to have any ambitions to go public in the near future. When I hear Lego, I am reminded of the building sets I played with as a youngster and the Duplo sets I played with my own children. This is part of Lego’s heritage, as it was woven into the fabric of our childhood. As the custom continues to be passed down from one generation to the next, nearly every child around the globe has heard of or played with Lego.

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