How To Make Billions in the Stock Markets According to Movies

How do they make more money in a day than you in your lifetime? Learn from the fictional masters of money from films and open your brokerage account today.

Photo courtesy of Tina Bojlesen.


I was reading the article Best Wall Street Films to Watch written by Jeremy Frommer on Journal, the other day and decided to write this one.

You should invest your cash wisely in the stock markets

Jeremy Frommer, author of the above, used to work back in the day for South African Mark Patterson, the co-founder, and Chairman of MatlinPatterson, a private equity fund established in 2002 with only $200 million.

Today, they have more than $8.9 billion in assets under management.

In other words, Jeremy Frommer knows how to make a lot of money and you should read every article he writes, watch every film and television show he produces, and buy every book or comic he publishes.

You can acquire a few shares in AT&T (NYSE: T) for as little as somewhere between $33.11 and $43.89 and receive an annual dividend of $1.96 or 4.85% each year for the rest of your life or until you decide to sell your shares.

Most people are very afraid of the stock markets because they have seen too many Hollywood films where you are a millionaire one day and then you somehow lose everything on the next day and you are broke and homeless.

The real world does not work like that. You cannot lose all your money in a single day even if you spend your whole day in Macau playing poker. By the time the clock hits midnight you get more checks from your customers and you are back right where you started. In fact, you may be wealthier than yesterday.

You don't need to work hard for the money anymore.

We now have solar panels, electric cars, robots, Brazillian hedge fund managers, Mexican actors with a Golden Globe, and websites like this one where you can learn a lot of things about Wall Street and other equally important topics.

Too Big To Fail

This 2011 television drama film was originally broadcasted on HBO (NYSE: T) and received 11 nominations for an Emmy Award including Outstanding Miniseries or Movie and 3 nominations for a Golden Globe including Best Miniseries or Television Film.

Two-time Emmy Award winner Peter Gould is the writer of this television film.

This television film is based on the non-fiction book Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System—and Themselves written by Andrew Ross Sorkin, a financial columnist for the New York Times (NYSE: NYT) and a co-anchor of CNBC's (NYSE: CMCSA, CMCSK) Squawk Box.

Valuable Lesson

Forbes 2000 companies don't actually have any money in their bank accounts saved for a rainy day like you and me.

They sell a lot of extremely expensive products and services to other Forbes 2000 companies and these companies don't have any old fashioned cash to buy anything either.

If you are running an airline, you cannot really use a credit card to buy an Airbus A380. That thing costs $432.6 million and you need more than one.

Even if you save 100% of all your net profits to buy one of these four-engine jet airliners it would take you between one and four years to save enough cash to buy one if you are running an airline like All Nippon Airways (OTC Pink: ALNPY), Hainan Airlines (SSE:  600221), Singapore Airlines (SGX: C6L), Air Canada (TSX: AC), or Air France-KLM (OTCQX: AFLYY)

As you can see, if you don't apply for a loan to buy more advanced technologies that you need to offer exactly the same products and services your competitors are starting to offer then you won't have an airline to run by the year 2020.

You need some collateral. Let's say ten obsolete Boeing 747 with a market value of $43.26 million each (Not a real figure) and this means you cannot sell these airplanes to anybody if the stock markets are crashing and you need access to a quick pile of cash to buy jet fuel or pay your pilots.

Now you need a second emergency loan with a higher interest rate to pay your first loan because you don't want to break your promises and end up like Argentina.

Do you see where am I going with this? It's a slippery slope.

You don't want to hold shares in Rolls Royce (LSE: RR) or General Electric (NYSE: GE) with millions in unpaid jet engine bills in the middle of a perfect storm.

You want to hold shares in all the banks holding all those obsolete airplanes as collateral. Major banks like Citigroup (NYSE: C), Wells Fargo (NYSE: WFC) or JPDexterMorganChaseManhattanChemicalBrothers Bank (NYSE: JPM)

You can hire someone like me to systematically buy and sell shares in TOO BIG TO FAIL companies in order to buy when the general public is selling everything in a panic and to sell short when the general public is buying everything in a tulip mania.

You should invest at least 0.9% of your wealth in these types of companies if you don't want to go back to the gold standard or worse, to the barter system.

I don't know about you, but I have never actually milked a cow or driven a tractor.

I suspect I would suck at swordsmanship and also at ransacking.

Billions

This television show is currently one of the highest-rated television shows on IMDB with a rating of 8.4.

Brian Koppelman, David Levien, and Andrew Ross Sorkin are the creators of this television show.

Academy Award nominee Paul Giamatti and Golden Globe winner Damian Lewis are the stars of this television show.

Like all television networks, CBS has been losing a lot of viewers in recent years and annual profits have decreased from $2.9 billion in 2014 to $1.4 billion in 2015.

Showtime is a CBS subsidiary and they have been producing a lot of good television shows in recent years, like Shameless, Homeland, Ray Donovan, Masters of Sex, and The Affair.

We cannot stop progress or modern technology, and slowly but surely, CBS will make less and less cash each year from commercials and they will replace their lost income with monthly subscription charges.

It is likely CBS will be forced to sell or close down a few television channels in the near future.

Netflix (NASDAQ: NFLX), Hulu, and Amazon (NASDAQ: AMZN) are unstoppable forces.

Maybe CBS should acquire 5% of Hulu from AT&T, Comcast (NYSE: CMCSA, CMCSK), Fox and/or The Walt Disney Company for $583 million, just in case.

If they are not careful, Netflix and/or Amazon and/or Hulu may acquire them someday for as little as $20 billion.

Now may be the right time to spin-off CBS into two separate companies. One holding the television channels and another one holding the radio stations, book publishers, film studios, websites, record labels, Westinghouse, and everything else.   

Valuable Lesson

Billionaires don't have enough friends because everybody is always trying to sell them something or begging them for donations or jobs.

If you are lucky enough to have a billionaire as a friend then don't ask him for cash for your charity. Instead, ask him which charity you should support and send them a sizable donation. Most billionaires have charities for tax purposes and for other ulterior motives but a few of them are genuinely trying to help the bottom 99%.

If you are lucky enough to have a billionaire as a friend then don't ask him for a job. If you are not smart enough to start your own company and you prefer to work for a Forbes 2000 company for six to eight figures, simply hire someone like me to buy a few used vehicles and register them on Uber, Lyft, and other similar companies and he will run the whole tiny company for you for a few years and keep it barely profitable for you. If you are fired from your job you simply hire yourself in the same position with the same salary until you can find a better job and you fire one of your employees.

The tiny company is only there to keep you employed for a few days, weeks or months. It's some sort of unemployed insurance but for Big Kahunas.

If you are lucky enough to have a billionaire as a friend then don't sell him anything. Except, 49% of your company one day before the IPO. Think big. 

Inside Job

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This documentary film was nominated for an Academy Award back in 2010 and also won in the Best Documentary Feature category.

Academy Award winner Charles Ferguson and Academy Award winner Audry Marrs are the producers and they both were previously nominated in the same category back in 2008 for their hard work in the documentary film No end in sight.

This film was made with only $2 million and they sold more than $7 million in worldwide sales. 

Valuable Lesson

You cannot tie 100% of your entire wealth to a single currency. Back in the day, the United States of America was begging to China, the United Kingdom, France and other countries for money.

Some said Yes.

Some said No.

One day, a new global financial crisis will happen and the United States of America will beg for money to other nations again and if they all say No then your wealth will decrease in value by half in a single day and you don't want that.

Invest some of your cash in Europe, the United Kindom, Japan, and obviously China.

Also, you really need to help your neighbors Mexico and Canada as well.

It does not matter if you only invest in one El Pollo Loco (NASDAQ: LOCO) in Toronto or in one Papa John's Pizza (NASDAQ: PZZA) in Tampico. Every dollar helps.

Empire (Film)

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Three-time Golden Globe nominee and Emmy Award nominee Sonia Braga, Golden Globe nominee and Emmy Award winner John Leguizamo, Golden Globe nominee and Emmy Award nominee Isabella Rossellini, and Golden Globe nominee Peter Sarsgaard star in this 2002 gangster film made with a very small budget of only $4 million.

The film was a commercial success with global sales of more than $18 million.

This is a good example of the commercial strategy designed to mitigate financial risks hiring hip-hop artists as supporting actors in small roles.

Treach, the lead rapper of the hip-hop group Naughty by Nature and Fat Joe, another well-known rapper with a gold record and a platinum record actually make appearances in this film.  

Valuable Lesson

Don't store your cash in refrigerators. Open a bank account and hire Howard Saint to launder your money instead. 

Empire (Television Show)

Two-time Academy Award nominee Lee Daniels and two-time Emmy Award Winner Danny Strong created this amazing television show.

Academy Award Nominee Taraji P. Henson has been nominated twice for an Emmy for her hard work in this television show and she also won her first Golden Globe back in 2016.

The show was nominated for a Golden Globe for Best Television Series – Drama in 2016.

This show is mostly about the music industry. However, Lucious Lyon, the founder and CEO of the record label has filed for an IPO and he will do whatever it takes to become a billionaire like Elon Musk.

I think Fox (NYSE: FOXA) should acquire Showtime from CBS and create a crossover between Empire and Billions and broadcast both shows for 30 weeks each year or more.

People currently watching Empire would watch Billions and vice-versa and the ratings for both shows would go up.

In the show, Bobby Axelrod tries to acquire a controlling interest in the record label but he did not realize Lucious Lyon was an extremely dangerous homicidal maniac.

Lucious Lyon cannot fight the heavy-weight champion of the world of finance by himself and he needs to bring a specialist from out of town to help him out.

Perhaps Jordan Belfort, Nick Leeson played by Ewan McGregor or Eddie Morra.

Two-time Golden Globe nominee Ewan McGregor and Academy Award nominee Liam Neeson worked together in the film Star Wars: The Phantom Menace.

Too bad you cannot actually apply for a job as a screenwriter for any of these television shows without at least a nomination for an Emmy Award.

Valuable Lesson

You can be a puppy for the rest of your life running a private company or you can run with the big dogs if you file for an IPO. 

Call your Wall Street guy and ask him for a list of all the requirements you need to become a publicly traded company and work towards that long term goal. 

The Wolf of Wall Street

This is one of the 1001 movies you must see before you die according to Ian Haydn Smith and Steven Jay Schneider.

The Wolf of Wall Street is currently one of the Top Rated Movies according to IMDB.

This film was nominated for two Golden Globes including Best Motion Picture - Comedy or Musical.

Academy Award winner Leonardo DiCaprio won the Golden Globe in the Best Performance by an Actor in a Motion Picture - Comedy or Musical category and he also received a nomination for the third time for an Academy Award in the Best Performance by an Actor in a Leading Role for his hard work in this film.

Leonardo DiCaprio is one of the producers and he was nominated for an Academy Award in the Best Motion Picture of the Year category for the very first time.

In 2015, he finally won an Academy Award for the Best Performance by an Actor in a Leading Role.

I think he should act exclusively in films produced by him from now on in order to secure a second nomination for an Academy Award in the Best Motion Picture of the Year category.

He already has a net worth of $217 million and he does not need another $64 million check from The Walt Disney Company (NYSE: DIS) or from AT&T. (NYSE: T)

Jonah Hill was also nominated for the second time for an Academy Award in the Best Performance by an Actor in a Supporting Role category.

He was previously nominated in the 2012 film Moneyball produced by Michael de Luca.  

Michel de Luca has been nominated three times for an Academy Award in the Best Motion Picture of the Year category and I think Jonah Hill should take a short break from comedy films for a few years and focus exclusively on drama films produced by people with at least one Academy Award nomination in the Best Motion Picture of the Year category.

Jonah Hill can still act and write in 23 Jump Street, Sausage Party 2, and Why Him Too? but anything else should be delayed for a few years.

NOTE TO JONAH HILL: You should not work with director Rupert Goold ever again or with any other director without an Academy Award nomination, a Golden Globe nomination or at the very least an Emmy Award nomination.

Terence Winter was nominated for an Academy Award in the Best Writing, Adapted Screenplay category.

He was first nominated for an Emmy Award back in 2000 for his hard work in the television show The Sopranos and he has also been nominated in 2012 for his very impressive work in the outstanding television show Boardwalk Empire.

Both television shows are currently two of the Top Rated TV Shows according to IMDB.

If you like murdering thieves and serial killers then you are going to love these television shows.

Academy Award winner and twelve-time Academy Award nominee Martin Scorsese was nominated for two Academy Awards for his work as director and producer.

This is the second time he has been nominated in the Best Motion Picture of the Year category. In 2011 he was nominated in association with Graham King for their work in the film Hugo.

This time, he was nominated in association with Leonardo DiCaprio, Emma Tillinger Koskoff, and Joey McFarland.  

Valuable Lesson

Never buy any shares with a price tag of less than $1.00 and yes, that includes the shares in the publicly traded company currently paying me to write these words. These are called penny stocks. If somebody is pitching you the next Facebook (NASDAQ: FB) or the next Uber, run like Hell.

If you break this rule. You will never be a billionaire. These companies are cheap for a reason but that is a topic for another day and perhaps for another website.


Margin Call

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J.C. Chandor was nominated for an Academy Award in the Best Writing, Original Screenplay category back in 2012 for his hard work in this 2011 independent drama film produced with a very small budget of $3.5 million.

This certified fresh film was very successful financially with global sales of more than $19.5 million.

He also directed the 2013 survival drama film All is Lost starring two-time Academy Award winner and three-time Golden Globe winner Robert Redford.

All is Lost is currently one of the greatest films ever made with a certified fresh rating of 94% according to RT.

This $8.5 million film was also very successful financially with global tickets sales of $13,627,519 and domestic DVD and Blu-Ray Disc sales of $4,455,632.

He also directed the 2014 period crime drama film A Most Violent Year, starring Academy Award nominee Albert Brooks, Golden Globe winner Oscar Isaac, and two-time Golden Globe nominee David Oyelowo.

In fact, two-time Academy Award nominee Jessica Chastain was nominated for a Golden Globe in the Best Performance by an Actress in a Supporting Role in a Motion Picture category for the second time for her hard work in this film.

The original investors of this critically-acclaimed $20 million film could never recover their investment.

J.C. Chandor is the next Steven Spielberg and if you are an executive producer then you should write him a $40 million check right now for his next film.

NOTE TO ZACHARY QUINTO: Keep investing at least a million bucks in any film written, directed and/or produced by J.C. Chandor for the next 14 years and you will eventually receive a Golden Globe nomination in the Best Motion Picture - Comedy or Musical category or in the Best Motion Picture - Drama category and/or your net worth will increase to at least $28 million.

Valuable Lesson

Some people don't want to pay for any new bridges and they simply prefer to take the long way to home.

I will let my business associate Brian Hugh Warner explain this one.


Alejandro Guillú Mendoza
Alejandro Guillú Mendoza

I have written for the largest and most popular websites in Australia, Japan, India and the United States of America including but not limited to TheStreet.com (NASDAQ: TST), Seeking Alpha, Motley Fool, Insider Monkey and Startup Mindset.

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How To Make Billions in the Stock Markets According to Movies