Wednesday, March 15, 2006

playing the stock market

Just on a whim I checked my Hollywood Stock Exchange account.  It’s been quite a while since I was able to log in because it was filtered at work as “Gambling”.  Trust me, it isn’t gambling.  This website treats films and actors as stock and bonds and funds and you can “invest” in an actor or a movie or a fund made up of multiple films.  You sign up for free and you are given two million dollars to invest.  There are people on there who have been playing for years and have a billion dollar portfolio.


Me?  13 million.  I think I was between 4 and 6 million when I last played.  I had invested in a few funds before I was cut off and they must have closed at full price and earned me some $$.  On the other hand I didn’t get squat out of Jodie Foster.  The thing about playin an actor is that you need to estimate what the earnings of the last 5 movies are, what the current value is, and what the expected earnings will be when you drop the oldest movie and add in the newest.  It makes sense, but it takes some work.  And you have to move before the entire community does and there is no longer profit to be made...and then you need to sell before the entire community does and there is no longer profit to be made. 


So I invested in some more funds at a low cost, and then invested in some random movies at very low cost.  Hopefully they get made, released, and make a whole bunch of money.  I think that’s the way to get your portfolio to shoot up.  Invest in a movie bond at .50 a share, buy the max 50,000 shares, and then wait.  It’s a slow process in many cases, but the long term is that there is a good deal of money to be made.  Imagine if a film I invested 50k shares in at $1 a share actually became a huge blockbuster and closed at the maximum $250k a share?  That’s more than $12 million in profit on the one transaction.  How do folks get to a billion?  They make really good decisions and spend a lot of time on it.  I’m just going to make my investments and check back in a month or two and see how I’m doing and if I think I should sell.  Maybe invest in some more funds.


Now, there is a way to join groups of friends and compete against each other.  So, I’d be more than happy to join a group and have a friendly little non-competitive contest going. 

1 comment:

Nick said...

I played the HSX for two and a half a years (between 99 and 02), and managed to get close to 200 million by the end. But I got to obsessed, and it took too much of my time, so I just deleted the account and that was that.

A small tip if you want to raise your worth steadily; buy medium sized films premiering in 2-3 months time.

Of course the most fun was always playing the hunches. And I managed quite a coup when I bought most of the cast of the Fellowship of the Ring a year in advance. Earned me a bundle.

Like I said, obsessed.