June 2, 2015
By Rechelle Tangcangco
The movie industry is very difficult for investors. In the end, it is about numbers and portfolio management. It is hard or impossible to predict, which movies will be successful. It is also important to diversify between low cost, middle size and expensive movies. Expensive movies are typically the most difficult; their budget can be huge but outcome is still uncertain. Small budget movies that mainly make money from rental and TV can be relatively lower risk. Generally, I think we should not anymore talk about financial crisis, for example, stock indexes make new records. The fundamentals of the finance are changing—that means new models, like digital investment markets, like crowdfunding. It is important to learn to use these new models.