How Pokemon is Like the Stock Market

Do your kids collect Pokemon cards? Do you have a favorite niece or nephew who just can't get enough of the craze?

In many ways, Pokemon is like the stock market. In its most basic form, a Pokemon card--one that is rare--is just like a non-profitmaking, non-dividend paying asset. Rare cards are parallel to a tiny free float. To top it off, children seek to find the rarest of the rare cards, just like a fund manager finds 'scarce' stocks so they do not underperform the market.

Capital gains are the long-term solution, just the same as when a fad like Pokemon must continue long enough for someone to pay a higher price than previously for the same cards.

Knowing when to hold and when to fold also is a concern. Children hold on to Pokemon cards just long enough for the price to go up--and then hope to sell the cards for a profit. In the stock market arena, today's hot Internet stocks are not held very long and often are sold prior to the company turning any kind of profit.

If you would like to learn more about this, check out the story at FT.com

You may like these other stories...

The split over convergenceDavid M. Katz of CFO wrote an interesting article on Thursday about the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) backing away from their...
Read more from Larry Perry here and in the Today's World of Audits archive.Because of the importance of revenue recognition auditing procedures, and because of the breadth of the principles for the FRF for SMEs, this...
World Health Organization backs higher tobacco taxes to cut smokingThe World Health Organization (WHO) approved guidelines on Wednesday urging countries to increase cigarette taxes to help discourage smoking, wrote Martinne...

Already a member? log in here.

Upcoming CPE Webinars

Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.