At this time of the year, the holiday movies are in the theaters and people tend to go to the movies during the holidays. If you want to know how Hollywood operates, a book called Moneywood by William Stadiem, St. Martin’s Press, NY, 2012 will help you understand what goes on in Hollywood. Although times change a bit, when Democrats and Republicans look for money to fund the increasing high cost of running for President, Democrats often went to Hollywood, while Republicans went to Orange County for big cheques. Hollywood was and is where the actor/actresses lived and that is where most people focus on. The book Moneywood focuses on the studio bosses who are well compensated, have large expense accounts, and move between studios retaining their positions.

Similar to most industries, Hollywood started heavily orientated to the domestic market and as time went on, people learnt diversification into the non US market or foreign markets. Although every year there will be great movies, not all movies made are good ones. Hollywood tends to go through cycles where there is a disconnect between the public and the studios of what is good and marketable to the those that are or could be avid movie attendees. Similar to most industries, the box office results are seen quicker and the costs to make, market and distribute the movies have risen. The book Moneywood focuses on the lives on those who make the decisions of what we see at the movies. If you wish to be a studio executive, having a law degree helps.

Linking to dividend paying stocks, while many in Hollywood seem to have excessive lives, when you buy a dividend paying company, the lives of the executives should be non excessive. They should have what is generally accepted  as normal lives for their job is to ensure consistency, finding innovations to remain close to the consumer and ensuring high margins to remain profitable. The studio bosses may be entertaining as some of the actors, but executives of dividend paying companies do not have to be.

There are more questions than answers, till the next time – to raising questions