The Danish toy manufacturer Lego has become known for its coloured plastic cubes. This toy is a two-time winner of the 'toys of the century' prize. 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? In this article we will see if it is possible to buy Lego shares.
How to invest in Lego?
The only way you can 'invest' in Lego is by buying rare Lego sets and selling them for more. Some Lego sets are worth hundreds of euros. Unfortunately, the company itself is not listed on the stock exchange, so it is not possible to buy Lego shares.
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The creation of Lego
The Danish carpenter Ole Kirk Christiansen is the founder of Lego. He lived in the Danish town of Billund. In 1916, he started building houses and furniture. In the 1930s, during the Depression, he decided to make miniature versions of his own products. He made miniature ladders and iron plates. They formed his inspiration to start making toys.
From modern toys to Lego
Christiansen decided to make modern plastic toys. He also made a truck that you could take apart and rebuilt. Then he saw plastic building blocks at competitor Kiddikraft. According to Christiansen, that was a great opportunity.
From 1949 onwards, Lego started producing plastic building blocks of its own. These plastic building blocks are hollowed out at the bottom. At the top they contain a few studs. As a result, they can easily be connected to each other. Not all retailers were enthusiastic about the new product at first.
Ten years later it was a successful product: the stones sold well. So good even, that the production line of wooden toys that were lost in a fire in 1959 no longer had to be rebuilt.
What changed with the advent of Lego?
Lego was a product suitable for mass production. That was a change because wooden toys were handcrafted at the time. The cubes can be put together endlessly. Different buildings can always be made. Because of this, there is always demand for the cubes. Moreover, children can imagine themselves in their own open-air museum and build entire fantasy worlds with Lego.
In that sense Lego is responding to the way these children experience the world. For this reason, a theme park was also opened.
Lego is not only a source of entertainment: The children can also learn something from it. Lego develops children's creativity, and it helps them figure out how to solve problems.
Lego theme park
There are also Lego theme parks. The first park was opened in 1968 in the Danish town of Billund. Three other parks have now been opened. Legoland Windsor opened in England in 1996. Legoland California opened in1999. The fourth theme park, Legoland Deutschland, opened in 2002. A park has about 1.3 million visitors annually.
In 2017, Lego sees its sales fall for the first time in years. Sales in both Europe and North America were disappointing. Due to the disappointing sales figures, many toys had to be sold at a discount. For the first time in 13 years, the company was confronted with declining sales. In September 2017, Lego announced that 1,400 jobs would be eliminated worldwide.