Can You Buy LEGO stock on the Stock Market? Key Things Before You Invest

lego stock

One of my favorite toys growing up as a kid was LEGOs. Almost everyone knows LEGO. Lego is a popular household name and has been around for ages. LEGO collectors are from different walks of life, but can you buy lego stock?

The short answer is that LEGO stock is privately owned and not on any stock market exchange.

LEGO is a popular children’s toy that encourages design and creativity. It is one if not, the most popular brand of toys as of the date and even way back it started. This set of blocks includes different shapes and colors of interlocking blocks and also instructions to help its users build fascinating creations.

You can also see some guides and ideas on different online videos or you can use your own creativity to build anything you like. There is no limit to playing LEGO especially if you are artistic and love to construct and innovate.

The company has a long-standing success in the industry, and with that, more and more investors are looking forward to investing in LEGO stock.

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Just so you know, even if LEGO is one of the most popular brands out there, the symbol of LEGO in the stock market belongs to an entity completely different from theirs.

If you are an investor and you are seeing a huge potential in investing in this brand, you are on the right page as this will discuss everything you need to know about LEGO, LEGO stock, LEGO stock ticker, its brand, history, etc.

Buying Lego Stock on the Stock Market

LEGO Group is a privately owned company and does not hold any shares. You cannot acquire LEGO stock on TSX or other exchanges based on its value. The corporation owns 51% of Kjeld Kirk Kristiansen, grandson of the founding Ole Kirk Kristiansen, and 25% of the LEGO Foundation.

KIRKBI AB includes the business strategy and investment operations in partnership with KIRKBI AB. LEGO Foundation tries to improve educational opportunities by playing.

Lego Stock Alternatives

If you are interested in investing in toy companies, I recommend looking at Hasbro (NASDAQ: HAS) or Mattel (NASDAQ: MAT).

The LEGO Company History and Merger Corp

LEGO, also known as The LEGO Group, was officially founded in the year 1949 but its story began in 1932, more than a decade ago. The foundation story can be traced back exactly to August 10, 1932.

The company started without a name, and also, it is not plastic that they are dealing with. They started their sale and production of small wooden toys. Actually, this move did not come as a surprise as this popular company’s founder was a carpenter, Ole Kirk Kristiansen.

Kristiansen started with a small woodworking business that sells household furniture. He started to sell and make wooden toys back in his hometown of Billund, Denmark. The success of his business came almost in an instant. As he saw success in his chosen business, he then named his company as “LEGO”.

The popular “LEGO” name came from the Danish phrase “ley godt”, which means “play well”. It was in the year 1947 that they started to produce plastic toys together with their traditional and original wooden products.

During the company’s second year, its business grew so quickly and became so popular. In the year 1949, they released modern LEGOs for everyone’s enjoyment. These modern LEGOs are the first version of the current plastic bricks you are enjoying today, which were originally dubbed as “Automatic Binding Bricks”. And just like with their other products, it did not need a long time for this design to become successful.

As per the directive of Godfred, Kristiansen’s son, the marketing used for their plastic toys changed. It was Godfred who identified the potential to showcase their toys in a manner that it can foster learning and inspire creativity, and can be appealing not only to kids but the parents as well. Before LEGO could move forward to a more successful journey, they decided to consider a few things.

During the early years, their toys could not interlock diversely enough, hence, they decided to improve and work on their design. After more than half a decade of development and research, LEGO’s first modern brick set was made publicly available in the market, in the year 1958.

The company works on improving its product’s brick design and also, the material used. And the designs, originally made, are still the designs and LEGOs you are enjoying today. LEGO company’s motto stays the same, “learning through play”.

After World War II had come to an end in the year 1947, The Lego Group started to trade Lego bricks after they purchased a plastic injection molding machine. After their newfound niche became a hit, the company then expanded to direct factories in different parts of the globe.

It was Niels B. Christiansen, a trusted Danish businessman and LEGO’s CEO since the year 2017, who helped the company to bring back its charm from their poor performance.

Who Owns The Lego Group?

So, who actually owns the company? It is actually the KIRKBI A/S, a private investment and holding company, who handles the ownership. And the Kirk Kristiansen family is the one who owns about seventy five percent of the company, KIRKBI, while twenty five percent remaining is owned by The LEGO Foundation. All of LEGO stock is privately owned.

Just so you know, Lego Foundation is an organization that centers on empowering children to be engaged, lifelong learners and creative. The foundation is focusing on what their toy can offer to the society, which is creativeness, education and engagement.

Lego was a family owned business until Kjeld Kirk Kristiansen, the founder’s grandson, decided to step down as CEO and chairman in the year 2004. 

Why Does It Matter?

Even if LEGO has been around for more than a hundred of years, they never showed signs of closing or slowing down of business. Sure, all businesses have their own share of ups and downs, but LEGO never showed signs that they will end up closing or at the weakest end in the market.

LEGO was even ranked on the 92nd slot in the Top 100 Most Valuable Brands for the year 2020, by Forbes.

If you will look at it in an overall perspective, The company was able to outperform the toy sector starting the year 2017, and they continuously reign and are expected to hold that position for a long time.

Other than LEGO’s success, the recent growth rate of LEGO can be associated with the COVID 19 existence. With families spent most of their time inside their homes, to keep themselves and family safe, they looked for ways to kill boredom and spend quality time with their loved ones even on quarantine, and guess what, they found the solution on their dilemma through building different LEGO models and basically, playing LEGO in general.

It was confirmed that during the 1st half of the year 2020, the consumer base was increased by 14%, while for its revenue, The company was able to see a growth of 7%. More so, their company’s operating profit was able to grow by as much as 11%.

The firm shared that they will invest up to four million US dollars into sustainability efforts.

How Much is the LEGO Worth?

As per the analysts, they estimate the worth of The LEGO Group to about forty billion US dollars. The current worth of LEGO is a no surprise considering how profitable they have become since they started, more so over the last decade.

Their yearly sales, especially in the year 2011, gives them a towering lead against their closest competitors. LEGO stock is one the most vaulable private companies in the world.

LEGO’s Revenue

Talking about revenue, LEGO’s revenue has been exceptionally profitable. The movement of their business is growing exponentially. The company reported that their revenue specifically in the 1st half of the year 2021 increased to more than 40% to about a whopping amount of 3.6 billion US dollars.

The company’s profit actually shot up to as much as 140% to 1.75 billion US dollars.

It was an obvious assessment that LEGO had a great year previously. The biggest question is, can they keep up with the excellent momentum? For now, no one can answer it, especially that it is likely that the big jump on their sales comes from the pandemic.

But with their success, their reputable name, this success can surely be kept for a long time and until the next generations to come.

The LEGO stock is privately owned and they generate revenues through branded merchandise, product sales and also, in their amusement parks, LEGOLAND.

Is Lego Stock Available To The Public?

With everything good about LEGO, for sure, investors would ask about buying LEGO stock. Unfortunately, it is a private company that up until this time is not listed on a public stock exchange market.

For sure, once it gets available, more and more people would like to get a taste of the success of this household toy brand.

You might wonder, why there is a ticker on the NASDAQ labeled LEGO – actually, it is not for The LEGO but for the Legato Merger Corp – do not get misled by that.

Compared to other successful and popular toy companies out there, the company is not traded publicly, as it keeps and remains to be a privately held company. This being said, investors cannot buy LEGO stock, and they won’t be able to see a ticker symbol if investors try to check them on the stock market.

Will They Ever Go Public?

The time to celebrate for investors is still unseen, as there is no news on whether the company will decide to go public or keep their assets within their group.

Coincidentally or maybe not, the chairman of the board and the deputy chairman are Thomas Kirk Kristiansen and Kjeld Kirk Kristainsen, who are the great grandson and grandson of LEGO’s founder, Ole Kirk Kristiansen.

With its investment and holding company, and humanitarian organization, you would realize that it is the Kristiansen family that owns literally the entire LEGO company.

It can be an extraordinary event that may lead the Kristiansen family to seek investment from outside, but as of the moment, it is very hard to imagine that they will give even a bit of control to anyone who is not part of their family.

Just like the rest of the investors, maybe your hope of one day grabbing even a bit of the company’s share to be added on your portfolio, will happen.

Although the IPO date of LEGO is still unforeseen, expect that if it happens, the price of it might be a little expensive. Thanks to their success, that even if their stocks are expensive, more people would definitely love to own even a part of their company – in case The LEGO plans to go public. There are no rumor or an asset acquisition.

What Is The Lego Group’s Stock Symbol?

As of the moment, their company is not yet up for grabs in the market, so no stock symbol yet for them.

Although LEGO can be a perfect symbol for their company, they cannot use it anymore as it is already in use by a company different from theirs.

What Is LEGO’s Stock Price?

As discussed, no LEGO stock price yet, as it is not available in the market just yet. But due to their success, reputation and history, expect that their price would be either at par or even better than their competitors. 

Ways To Invest in The Lego

As of the moment, there is no way you can buy LEGO stock, so the best alternative for you at this time is to hold and collect sets of LEGO as they anyway increase in value.

So, why is it recommended that for now, it is best if you settle with collecting the LEGO toys itself and not just wait for LEGO stock to go public? To help you understand it better, read the following:

•      There is a good demand for collectible and rare toys

Yes, there is a big market waiting for you, especially if your LEGOs are from the 80’s and 90’s. Those who enjoyed LEGOs during those times would love to invest on toys that remind them of their younger years.

Popularity of different LEGO movies plus the company’s international expansion just made the demand higher, and the value of the toys more expensive.

•      Mint condition and limited items are being sold at a higher price

If you are planning to invest in LEGOs, you have to make sure that you tidy and store them pretty well. Those that are in mint condition can actually bag higher value in the future.

Some LEGO items can yield up to 700% returns or even more in some instance, but just to set your expectations, some may give you negative ROI. Make sure that the condition of the LEGO is in its finest state, as the value of this toy will dramatically go down once you open the box, more so, if it is damaged.

•      They are a well-established brand

Their name itself can give you peace of mind that they are part of the low-risk investment. They are here for more than a century ago, and there is not even a small signal that they are going anywhere. They have built a huge cult and loyal customer base following them in different parts of the world.

•      Its appeal is versatile

They offer something to practically all age groups. They have options for beginners, and advanced users, including those who aim to become an architect someday. With their branded sets and mass appeal, there is definitely something for anyone to enjoy.

People are buying them not only because of memories or nostalgia but also because they want to give the next generation on their line something to enjoy and learn from.

•      If you are artistic, then LEGO is absolutely for you

If you are creative and hiding a million ideas in your mind that you want to share through LEGO building, then you never know, LEGO can be a money-making machine for you.

•      There is an online market to sell them

There are online marketplaces around that can let you sell either individual LEGO bricks or complete LEGO models. This can give you an easier time disposing your LEGO collection with a hefty markup. 

 

Final Takeaway

LEGO company is a brand that is here for more than a century. They are dedicated to help others boost their creativity while having fun, and learning.

There is so many reasons why would you like to invest in The LEGO Group. Unfortunately, even how much you want to do so, you cannot, as for now, they are not available in any public stock exchange market. It is not available today, and no sign that it will be available in the future.

Investors may expect that in the event they become available in the public, the price of their stocks will be a bit more expensive than their competitors. It is already expected considering their credibility, and their reputation way back when they started up to today.

Although their stocks are not publicly available as of today, it is highly encouraged that you start your investment with buying and collecting LEGOs, particularly those that are limited and rare.

You will surely have a huge market if you decide to invest on the LEGO toys itself. People from different parts of the world are fond of collecting LEGOs, as it brings back their childhood and they know that the next generation after them would get a good experience as they play with the LEGOs.

 

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