As an investor, you want to put your money into something that will provide a good return in the long run. Nike is a well-known and established brand that has been around for a long time. They offer both shoes and stocks as potential investments, but which one is right for you? This article will explore the pros and cons of investing in Nike shoes and stocks, as well as key factors to consider when choosing between the two.
Also read: Investing in Sneakers: A Smart Move or a Risky Business?
Introduction to investing in Nike
Nike is a multinational corporation that designs, develops, and sells athletic footwear, apparel, and accessories. The company was founded in 1964 by Bill Bowerman and Phil Knight and has since become one of the most recognized and successful brands in the world. Nike has a market capitalization of over $200 billion and is included in the Dow Jones Industrial Average.
As an investor, you have the opportunity to invest in Nike in two ways: through their products, specifically their shoes, or through stocks. Both options have their advantages and disadvantages, and it’s important to understand them before deciding which one is right for you.
Also read: Is the Price Tag on Nike Air Jordan Really Worth It? An Honest Review.
Overview of Nike shoes as an investment
Nike shoes are a popular investment for collectors and enthusiasts. Some rare and limited-edition shoes can sell for thousands of dollars on the resale market. For example, the Nike Air Mag, which was featured in the movie Back to the Future II, sold for over $92,000 at auction in 2016.
One advantage of investing in Nike shoes is that they are tangible assets that you can hold in your hand. You can display them in your home or office, wear them, or sell them. However, there are also some disadvantages to consider. For one, shoe values can be difficult to predict and are subject to market fluctuations. Additionally, the resale market for shoes can be volatile and unpredictable.
1. Off-White Collaborations
Nike Air x Off-White Sneakers
The passing of Off-White designer Virgil Abloh in November 2021 led to a significant surge in demand for Off-White x Nike collaboration sneakers. One of the most popular models, the Off-White Air Jordan 1 in “Chicago,” saw its aftermarket price double from an average of $5,500 to $10,600 in some sizes, according to Complex. This increase demonstrates the potential investment value of Off-White collaborations, making them a must-watch in 2022.
Also read: Step Up Your Sneaker Game with Red Nike : The Ultimate Style Statement.
2. Air Jordan 1 Retro Sneakers
The Original Hype Sneaker
Since its release for basketball legend Michael Jordan in 1984, the Nike Air Jordan 1 has been a sneaker-head must-have. Every time this iconic style is re-released, it catches the attention of the sneaker world. According to figures from TheRealReal, the Nike Air Jordan 1 sneaker has an average resale value of up to 1,816%. This consistent demand for the Air Jordan 1 makes it a solid investment choice.
3. Adidas Yeezy Boost 350 V2
The Most Re-Sold Sneaker
The Yeezy x Adidas collaboration has been going strong since its debut in early 2015. According to data compiled by Uswitch, the most re-sold sneakers in the world are Adidas Yeezy Boost 350 V2 Black Red (2017/2020). The site estimates that more than 70,000 pairs of the sneakers have appeared on the re-sale market, with an average sale price of $407 USD ($528 CAD), a 60 percent price premium. The Yeezy Boost 350 V2’s consistent popularity makes it a worthwhile investment.
4. Nike SB Dunk
The Skateboarding Classic
Originally designed for skateboarders in 2002, the Nike SB Dunk has become a staple in the world of streetwear and a popular choice among sneaker collectors. With numerous collaborations and colorways available, the SB Dunk offers a wide range of investment opportunities. Some of the most sought-after models, such as the Travis Scott x Nike SB Dunk Low, can fetch over $1,000 on the resale market. Keep an eye on upcoming releases and collaborations to capitalize on the Nike SB Dunk’s investment potential.
5. Nike Air Force 1
The Timeless Classic
As one of Nike’s most iconic silhouettes, the Air Force 1 has stood the test of time and continues to be a popular choice among sneaker enthusiasts. With countless colorways and collaborations, the Air Force 1 offers numerous investment opportunities. Some limited-edition releases can fetch high resale values, making this classic sneaker a smart investment choice in 2022.
6. Nike Air Max
The Evolution of Air
Since its introduction in 1987, the Nike Air Max has become a symbol of innovation and style. With several iconic models under its belt, including the Air Max 1, Air Max 90, and Air Max 97, this sneaker line offers a plethora of investment opportunities. Look out for limited-edition releases and collaborations, which can command high resale values and make for profitable investments.
7. Nike LeBron
The King’s Sneakers
As one of the most prominent athletes in the world, LeBron James has a strong partnership with Nike, leading to a successful sneaker line. The Nike LeBron series boasts numerous models, each with its unique design and technology. Some limited-edition releases and collaborations can fetch high resale values, making the Nike LeBron series a sneaker line worth considering for investment in 2022.
8. Nike React
The Future of Cushioning
Introduced in 2017, the Nike React technology has quickly become a fan favorite thanks to its exceptional cushioning and energy return. From running shoes to casual sneakers, the React line has expanded to include various models, each offering its unique style. Though not as hyped as other Nike models, limited-edition releases and collaborations within the React line can still yield profitable investments. Keep an eye on upcoming Nike React releases to capitalize on this innovative technology.
9. Nike VaporMax
The Pinnacle of Air
The Nike VaporMax represents the next generation of Air Max technology, providing a lightweight, flexible, and cushioned experience. With its unique design and comfort, the VaporMax has garnered a following among sneaker enthusiasts. Limited-edition releases and collaborations, such as the Off-White x Nike VaporMax, can command high resale values, making the VaporMax a sneaker to watch for investment purposes in 2022.
10. Nike Blazer
The Retro Revival
Originally released as a basketball sneaker in 1972, the Nike Blazer has experienced a resurgence in popularity in recent years. Thanks to its clean design and nostalgic appeal, the Blazer has become a favorite among sneakerheads and streetwear enthusiasts. Collaborations, such as the Off-White x Nike Blazer, have further cemented the Blazer’s status as a sought-after sneaker. Look out for limited-edition releases and collaborations to make the most of the Nike Blazer’s investment potential.
In conclusion, 2022 offers a wide range of investment opportunities in the world of Nike sneakers. From limited-edition releases to collaborations with high-profile designers and artists, staying informed about upcoming drops and trends is essential for sneaker investors. Keep an eye on these ten sneaker lines and their respective models to make the most of your investments in the ever-growing sneaker market.
Pros and cons of investing in Nike shoes
Pros
- Tangible assets that can be displayed, worn, or sold
- Some limited-edition shoes can increase in value over time
- Can be a hobby for collectors and enthusiasts
Cons
- Difficult to predict shoe values and market fluctuations
- Resale market can be volatile and unpredictable
- Can be time-consuming to research and find good investment opportunities
Overview of Nike stocks as an investment
Nike stocks are a popular investment choice for those looking to invest in a well-established and successful company. Nike has a strong brand and a history of consistent growth, making it a relatively safe investment option. The company has a solid financial foundation, with a strong balance sheet and a history of paying dividends to shareholders.
One advantage of investing in Nike stocks is that they are more predictable than shoe values and are subject to less market volatility. Additionally, stocks are a passive investment that requires less time and effort than investing in shoes. However, there are also some disadvantages to consider. Stock prices can still fluctuate, and there is always the risk of losing money if the market takes a downturn.
Nike stock prices in past 10 months: since August 2022 to May 2023
Currency in USD
| Date | Open | High | Low | Close* | Adj Close** | Volume |
|---|---|---|---|---|---|---|
| May 01, 2023 | 126.92 | 128.68 | 107.00 | 107.51 | 107.51 | 135,964,600 |
| Apr 01, 2023 | 122.50 | 127.49 | 117.85 | 126.72 | 126.72 | 81,949,300 |
| Mar 03, 2023 | 0.34 Dividend | |||||
| Mar 01, 2023 | 117.95 | 126.06 | 115.79 | 122.64 | 122.29 | 156,964,700 |
| Feb 01, 2023 | 127.90 | 131.31 | 117.34 | 118.79 | 118.45 | 101,178,600 |
| Jan 01, 2023 | 118.55 | 129.23 | 117.44 | 127.33 | 126.97 | 135,012,300 |
| Dec 02, 2022 | 0.34 Dividend | |||||
| Dec 01, 2022 | 110.09 | 119.18 | 101.68 | 117.01 | 116.32 | 194,177,000 |
| Nov 01, 2022 | 95.69 | 109.69 | 88.72 | 109.69 | 109.04 | 158,370,900 |
| Oct 01, 2022 | 83.13 | 94.35 | 82.22 | 92.68 | 92.13 | 200,873,100 |
| Sep 02, 2022 | 0.305 Dividend | |||||
| Sep 01, 2022 | 105.80 | 113.36 | 82.50 | 83.12 | 82.39 | 206,296,500 |
| Aug 01, 2022 | 114.00 | 118.47 | 105.81 | 106.45 | 105.52 | 127,466,600 |
| Jul 01, 2022 | 101.64 | 115.21 | 99.53 | 114.92 | 113.92 | 136,287,300 |
| Jun 03, 2022 | 0.305 Dividend | |||||
| Jun 01, 2022 | 119.83 | 123.82 | 100.78 | 102.20 | 101.06 | 172,665,200 |
| *Close price adjusted for splits.**Adjusted close price adjusted for splits and dividend and/or capital gain distributions. | ||||||
Also read: NIKE, Inc. (NYSE: NKE) Stock Price & News.
Pros and cons of investing in Nike stocks
Pros
- More predictable than shoe values and subject to less market volatility
- Passive investment that requires less time and effort than investing in shoes
- Nike has a strong financial foundation and a history of consistent growth
Cons
- Stock prices can still fluctuate, and there is always the risk of losing money
- Returns may not be as high as investing in rare or limited-edition shoes
- Can be affected by macroeconomic factors outside of Nike’s control
Key factors to consider when choosing between Nike shoes and stocks
When deciding whether to invest in Nike shoes or stocks, there are several key factors to consider. These include:
Investment goals
Your investment goals will play a major role in determining which option is right for you. If you are looking for a long-term, passive investment, stocks may be the better choice. If you are looking for a more hands-on investment opportunity that can also be a hobby, shoes may be the better choice.
Risk tolerance
Your risk tolerance will also play a role in determining which investment option is right for you. Shoes are generally riskier than stocks, as their values can be more difficult to predict and are subject to market fluctuations. Stocks, on the other hand, are generally considered a safer investment option.
Research and knowledge
Investing in shoes requires a significant amount of research and knowledge of the market. You need to know which shoes are in demand, what their values are, and how to find good investment opportunities. Stocks require less research and knowledge, but you still need to have a basic understanding of the stock market and how it works.
The potential for growth in Nike shoes and stocks
Nike shoes and stocks both have the potential for growth, but the level of growth may differ between the two. Shoes can provide high returns if you invest in rare or limited-edition pairs that increase in value over time. However, finding these opportunities can be difficult and time-consuming. Stocks may provide more consistent growth over time, but the returns may not be as high as investing in rare or limited-edition shoes.
Also Read: The Rise of Nike Dunks: A Sneakerhead’s Guide to the Iconic Shoe.
Risks associated with investing in Nike shoes and stocks
As with any investment, there are risks associated with investing in Nike shoes and stocks. Shoes can be difficult to predict and are subject to market fluctuations, which can result in significant losses. Stocks can also fluctuate in value, and there is always the risk of losing money if the market takes a downturn.
How to invest in Nike shoes and stocks
Investing in Nike shoes and stocks requires different strategies and approaches. To invest in shoes, you need to have a good understanding of the market and be able to identify good investment opportunities. To invest in stocks, you need to have a basic understanding of the stock market and be able to choose the right stocks to invest in.
Conclusion – which investment is right for you?
Deciding whether to invest in Nike shoes or stocks ultimately comes down to your investment goals, risk tolerance, and level of knowledge about the market. If you are looking for a long-term, passive investment, stocks may be the better choice. If you are looking for a more hands-on investment opportunity that can also be a hobby, shoes may be the better choice. Whatever you decide, make sure to do your research and invest wisely.
