Americans tend to go to the movies more often in times of economic slowdown. Box office sales usually perform extremely well in contrast to a general economic slump.

Movie revenues in the U.S. actually increased from 2007 to 2008, and again from 2008 to 2009, while the economy crashed. This is in part because movies are able to take advantage of multiple revenue streams, ranging from ticket sales at the box office, to sources like movies-on-demand and the rapidly growing sector of International distribution.

Even small films can have modest success at the box office which can translate into millions in profits. Due to this, independent films are now a highly sought after Alternative Investment that allows investors to obtain significant financial gain without being an A list movie star.

Independent Films

Independent films offer a practical and enticing opportunity to invest in the movie industry. They are not produced in major Hollywood studios and generally use a minimum budget in comparison to feature films. The budget for an independent film can range from $30 million as in The Passion of the Christ, to only a few hundred thousand dollars. While the biggest sellers at the box office are rarely independent films, they can still make significant profits due to their low costs. The independent film Juno provides is a successful example as it brought in $143.3 million with a $7.5 million budget (Avatar cost approximately $300 million!). Independent films offer investors an opportunity to contribute and to feel involved in a unique project. This involvement can be very rewarding for investors and you may even get your name listed in the credits.

How to Invest

Simply contacting an individual producer or production company is one option for investors. Independent film producers frequently have projects they need funded. There are also websites and journals dedicated to providing information on films that are looking for investors. It is essential to conduct thorough research on any film and its producers before making any size of investment. Investments are generally structured such that you cannot lose any more than you invest and usually investors are reimbursed before anybody else receives payment. There can be significant tax benefits for independent film investments. You should research this beforehand as the tax breaks can vary for each project. It is very important to understand that this is not a “short term” investment, as it is not uncommon for a successful film to take two or more years to provide a return on investment.

Many independent films fail because they are unable to secure theatrical distribution. Some reports show that in the U.S. approximately 95% of all independent movies produced fail to go to distribution. Therefore, it is prudent to invest in companies that finance, produce and market independent films. Tri Pillar Investments, LLC works with Hollywood based, IndieVest as an option for investing in the independent film market. IndieVest guarantees domestic theatrical distribution for all of their productions. Only Accredited Investors can apply for IndieVest membership and the minimum investment for most projects is $50,000.

The 5% of independent films that actually secure domestic theatrical distribution earn over $3 billion annually in the U.S. So, here’s your chance to partner with TPI and IndieVest and “make it big in the movies”.

Troy A. Buder is the Founder & President of Tri Pillar Investments, LLC — boutique Registered Investment Advisory firm which specializes in working with members of the Medical and Academic communities including Duke University, Wake Forest, UNC Chapel Hill, NC State, Emory and UCLA.

Imagine growing up in a family of twelve. Chances are you would experience some challenges and complexities, but most families manage to pull it together and find livable solutions.

What if you were a member of a professional sports team and shared a uniform with teammates from 6 other countries? This is a scenario for potential Grade A conflict and dysfunction.

The challenges and complexities of leading a multinational group can quickly grow exponentially. Differences in language, education, religion, law, currency and work ethic make it difficult to function homogeneously. Herein lies the formidable challenge of the 27 member European Union.

The Spontaneous Potty Break

I recently visited Manhattan for some business meetings. As I exited my hotel early one morning, I was greeted by the “Dog Whisperer.”  This young man managed to successfully shepherd a herd of no less than 20 dogs. Big dogs, little dogs, all kinds of dogs.

I was astonished by his seemingly effortless command over his pack — until one little guy (a terrier of course) derailed the entire operation with his unannounced and untimely potty break. Chaos ensued and the once dignified “Conductor of the Canine” was now reduced to a mere traffic cop.

I mean absolutely no disrespect with this analogy, but the citizens of Greece are the potty-breaking terriers of the EU. And the German Shepherds and English Bull dogs are none too happy with this apparent lack of focus and discipline.

The EU currently consists of 27 independent nations which have come together to create a synergistic community for mutual benefit. The concept is meritorious in an idealistic world. But much like the sports team comprised of players from 6 different nations, machine waxes poetically when the team is winning. Introduce some struggles and tensions and … you know the story. When that one terrier decides to strike out on his own, you better have a seasoned veteran holding all those leashes.

Dysfunction Causes Delays

The EU has yet to implement the Trillion dollar bailout package they agreed upon a few weeks ago. The primary reason for the delay is discord among the alpha dogs in the pack. Although Germany’s two houses of parliament rubber-stamped the country’s contribution of 750 Billion Euros, a recent spat between the leaders of Germany and France triggered fresh market jitters and further delays.

The chief complaint emerging from the crisis is Europe did too little, too late to defend the Euro. Now they are fighting to make up for lost time. However, their focus seems to be on a short-term fix rather than a long-term solution.

Christine Lagarde, France’s Minister of Economic Affairs recently stated “the EU taskforce has to focus on what is deliverable quickly.” She added: “We will continue to focus on what we can achieve in the short-term, because it’s really what is guiding us at the moment, it is being pragmatic.” C’est la vie, I say, c’est la vie!

Troy’s Top Five Reasons the EU Really Needs a Dog Whisperer, not a Finance Minister

5) The EU needs to strengthen economic governance to be able to act quicker and in a more co-ordianted and efficient manner to deal with any future economic crises.

4) The EU bailout package needs to be backed and supported by a charter of rules that govern the Euro.

3) The EU has to look for ways to reduce the divergences in competitiveness between member states.

2) Bail em’ out or kick em’ out: the alpha dogs still aren’t convinced that keeping some of the smaller dogs is truly in their best interest.

1) A pervasive sense of entitlement to excessive vacation time and early retirement has crippled the labor force of some of the member nations.

Can you hear the whispers?

Troy A. Buder is the Founder & President of Tri Pillar Investments, LLC — boutique Registered Investment Advisory firm which specializes in working with members of the Medical and Academic communities including Duke University, Wake Forest, UNC Chapel Hill, NC State, Emory and UCLA.