Hollywood or Silicon Valley: Which One Is a Better Investment?

Posted: Jul. 15th, 2013  |  By DailyLuxe News

Paramount Pictures /Marvel

A professor of finance at Stanford University tells the New York Times that neither multi-billion-dollar industry is safe bet for investors looking for a dependable return on investment (ROI. Yes, both industries are huge. However, both also are unpredictable and unstable, according to Stanford’s Professor Ilya A. Strebulaev. 

While both industries are supported by a few big hits, there is not a steady flowing stream of profitable opportunities. It is a crapshoot that investors can select sure-fire winners from the myriad options available. It is an economic ball of confusion, making it difficult to discern between worthwhile and worthless.  The bottom line is that it is probably best to look elsewhere for a good ROI, according to the professor.

 “Hollywood and Silicon Valley really exist because of a few big successes,” Mr. Strebulaev said. “If you take a random movie, it loses money. Hollywood makes money from its big hits. The exact same is true with Silicon Valley; the average investment loses money.” He said both were considered “alternative investments.”