Page 78 - Morgan Housel - The Psychology of Money_ Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)
P. 78
COBACOBA
The interesting thing here is that you have to have achieved a certain level of
success to become a public company and a member of the Russell 3000.
These are established corporations, not fly-by-night startups. Even still, most
have lifespans measured in years, not generations.
Take an example one of these companies: Carolco, a former member of the
Russell 3000 Index.
It produced some of the biggest films of the 1980s and 1990s, including the
first three Rambo films, Terminator 2, Basic Instinct, and Total Recall.
Carolco went public in 1987. It was a huge success, churning out hit after
hit. It did half a billion dollars in revenue in 1991, commanding a market cap
of $400 million—big money back then, especially for a film studio.
