Before I begin, I’d like to start by saying I highly recommend listening to this segment rather than reading it. We had a lot of fun making it and I know you’ll enjoy it!
That being said, for those who prefer reading, read on.
Steve Goes To Broadway
Today I’m starting a new series I call “Steve Goes To Broadway”. No, I’m not turning into a song and dance man, but I have decided to make an investment in a Broadway show, and I thought it would be fun to share the experience with you.
It all started when I recently interviewed a successful Broadway Producer, Ken Davenport.
Ken Davenport: “I’m Ken Davenport, I’m a Tony Award Winning Broadway Producer”
Now, whenever I mention this to anybody, they don’t say, “Oh, how exciting! They say, “Are you ready to lose your money?” So I asked Ken about how much he lost in the very beginning.
Ken Davenport: “Well, that first one was actually pretty big, and actually my first three shows were all financially successful.
So I took the learnings—and still take the learnings—from that first show, but I take every show that I do…I take the learnings from that one a little forward and try to change and innovate. And unfortunately, success is not a straight uphill trajectory in any industry.”
Oh, well, that changes things a little. So I guess it’s the law of averages. You may lose or win at any attempt, but the average win/loss ratio is 4 losses for every 5 attempts.
Well, Ken agrees but he sees it another way.
Ken Davenport: “Well, first of all, I don’t like to say four out of five shows fail. I like to say one out of five shows succeeds.”
Of course, he is the producer and an optimistic fella to begin with.
But how does a 20% success rate measure up against any new business venture?
Ken Davenport: “…it’s small businesses in this country only have about a one out of ten shot of succeeding.”
So wait a minute. Investing in Broadway has a 1 out of 5 success rate; starting a new business has a 1 out of 10 success rate? Put another way, investing in Broadway is half as risky as starting a new business?
I don’t know if all this is true, but let’s move on. I spoke with Ken after the segment and mentioned I might be interested in dipping a toe in and, not surprisingly, he told me about a new show he is currently producing that is on its way to Broadway.
So that got my attention, and it just so happened that they were putting on a “lab” in New York to perform highlights of the production to interest potential investors and other Broadway insiders.
Off I went. I flew up to New York (where my son lives too) and he and I went to this little mini-production of the show.
I met Ken and saw the star of the show (I didn’t meet her), Marilu Henner, who you might remember starred in the TV Show Taxi and many other terrific movies.
Long story short: I bought a half a unit and we will see what happens next. I will keep you posted. Let me know if you have any questions or comments to help guide me in this new venture, ‘cause all I got is my wits and my gut to figure out what’s really going on. You can reach me at StevePomeranz.com
The Steve Pomeranz Show and United Capital Financial Advisers, LLC are separate and unrelated companies. Investing involves risk and investors should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing piece to make decisions. The information contained herein is intended for information purposes only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances. There are no investment strategies, including diversification, that guarantee a profit or protect against loss. Past performance doesn’t guarantee future results. Equity investing involves market risk, including possible loss of principal. All information quoted in this piece is for informational purposes only, and the author does not warrant the accuracy, completeness, timeliness, or any other characteristic of the information. All information and data are driven from publicly available information and has not been independently verified by the author.