We are at the precipice of a Fourth Industrial Revolution. If we went from dusty dial-up to light-speed pocket computers in 20 years, what can we do in the coming decades when industries are equipped with limitless processing power and consumer information.
This revolution is paving the way for the next level of humankind. It is vital for any serious investor today to understand disruptive technologies and their potential impact.
Disruptive technology is any technology that “disrupts” the normal operation of businesses, consumers, and/or industries. In its infancy, this technology generally attracts a limited audience, given its unproven practical application and pervasive performance issues as the “kinks” get worked out. Often, early adopters are either foolhardy thrill seekers or seasoned prognosticators.
I encourage you to be in the latter group.
Why Does Disruptive Investing Have The Most Potential To “Win Big”?
Investing in disruption means you are working harmoniously with a rapidly changing economy. Different disruptive companies have come forward and shown that any company or industry, no matter how big or strong, can maintain dominance in the long term.
You must go with the flow and welcome the disruption. Technological advancements are happening so fast that industries are getting disrupted faster than ever.
In 2010, the biggest companies in the world were some of Warren Buffett’s classic standbys: Exxon, Berkshire Hathaway, GE (all with a reasonable market cap of less than $400 million). But, by 2020, the tech giants had taken over, with Apple, Microsoft, Amazon, Google, and Facebook leading the pack. The market cap for the largest company in the world, Apple, jumped to $2.2 trillion. Meanwhile, Exxon was no longer even among the top 20 companies globally.
We are experiencing the biggest technology revolution in human history. The highest growth stocks with the best overall performance are the companies at the forefront of these exciting emerging technologies. 10-15 years ago some of today’s biggest tech giants were just startups, and there are more opportunities coming!
All signs indicate that this trend is here to stay: disruptive technologies are the future. It is no longer sensible to only invest in what you comfortably understand. You have to branch out to where the fruit is. And today, much of the fruit is in tech. The next TSLA, AMZN, FB, GOOG, NFLX will emerge from disruptive technologies.
You have to get in the know, now!
Netflix is another classic example of disruptive innovation that used a new business model and technology to disrupt an existing market. It initially offered a DVD-by-mail rental service and later launched its online, subscription-based movie streaming service. Today, its on-demand all-you-can-watch movie platform is used by over 150 million people globally.
Become a part of the future and embrace these changes and constantly keep evolving with it. If an investor can do that, they will always come out as the winner.
We can help you learn to think differently about investing and get in the game! You can find some excellent resources to get started on www.disruptiveinvesting.io