Am I A Shrewd Buyer or the Greater Fool?

I just posed a question to a currency forum that I like to frequent.  I stated that I just won a hotly contested auction, and I asked if I was a "greater fool" because I was willing to pay more than anyone else.

I then gave my reasoning that if I win an item in an auction, I only paid a few dollars more than the next lowest bid (AKA: "the underbidder").  Therefore, I could sell it to him for almost as much as I bought it for.

Another forum member shrewdly pointed out that I could only get the same kind of money if there was yet another person who would act as an underbidder to my underbidder.  Very true if I sell in an auction setting.  So am I a greater fool?

I say no.  Because it depends on what you buy.  I purchased an a drop-dead gorgeous 1935 Canadian Bank of Commerce $5 Note in the collectible grade of Extremely Fine.  True, I didn't buy the highest grade available, but I don't always have alot of funds to spend on stuff like this because I have this terrible habit of keeping everything I buy instead of recycling cash to buy the next thing.

As I see it, I "hit the trifecta", because the item I bought is (1.) Desireable because of it's beauty, (2.) It is somewhat rare (3.) It is a higher grade.  Those are the three components of what makes a good collectible, and when you have all three working for you, the collectible will tend to rise in price nicely over time.

But here's the last piece of the puzzle.  I didn't overpay.  I did my research on what these beautiful notes sell for, and I put in a bid that was high enough to hopefully win, but not so high that I would overpay.  In fact, my bid was entered such that if I won, I would get a good deal (I did!).  Did I get a Super Deal?  No.  But when you are buying an item that has the trifecta, it is really very hard to find a "Super Deal"...there are just too many people looking for it.  I can say that my winning bid was only $8 from my maximum bid.  If it went higher than that, I'd would have had to wait for the next one to come along, but that would be OK, because I'm not in a hurry.  If I didn't buy this one, then I've have more money saved up to spend on soething else.  But even then, I would stay disciplined and not overpay.

So am I the greater fool?  No.  Because I did my homework and I didn't overpay.  I remained disciplined.  And the item that I bought had the trifecta of condition, rarity, and wow-factor going for it.  True, I might have to hold it for a while to make a profit, but this when and item has all three components of what makes a collectible great, holding onto it is a pleasure.

Collector Steve