Most of you have probably seen or heard the Janus Funds ads on TV or radio talking about how carefully Janus researches potential investments before actually making them part of their portfolio (e.g., the optical fiber company and the radio station network). Each ad ends the same: Janus's rolled-up-sleeves research finds that the investment is even better than the books indicated, Janus invested, and everyone's happy.

Yesterday, however, I heard another Janus ad that talked about the time that Janus considered investing in a large theatre chain. According to the ad, the books looked pretty good, but Janus decided to send some of its people out to visit the theatres personally. What they found, so the ad says, is that the theatres' margins were so thin that they had to rely on concession sales, and the lines at the concession stands were so long that people weren't buying. The ad ended by saying that Janus passed on the investment, which turned out to be a good thing for Janus.

What a slap in the face of theatre chains!

David