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Business bits

2012-05-24T09:50:37+00:00

So Facebook’s Initial Public Offering (IPO) debuted at $38/share, and now is down to $32/share. Investors are already filing lawsuits because they lost money, claiming that the initial price was artificially inflated. I think it’s very funny. The lesson here is, don’t be an early adopter of anything, whether it’s technology or stock. Wait and see how things go. The second lesson is, the stock market is always a gamble, no matter how smart you think you are. You’re going to lose money sometimes. Especially if you’re an early adopter.

Dalian Wanda Group, China’s largest entertainment company, bought the AMC theatre chain for $2.6 billion. Since Hollywood’s quality of movies has declined so badly in the last decade, I’ve already stopped going to theatres to see movies, so it doesn’t affect me. But now that the Chinese own the second-largest movie theatre chain in the United States, there’s another reason not to go to the movies. I remember when Japanese companies were buying up landmarks and big companies in the 1980s, before their economy collapsed in 1991, resulting in Japan’s “Lost Decade,” where their economy stagnated because their government spent trillions in “stimulus” with no effect, just like the US is doing today. Japan’s “Lost Decade” is actually still underway, more than 20 years later.

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