I recently read a LinkedIn post written by Ray Dalio, the chief investment officer of Bridgewater Associates.
Bridgewater Associates is the largest hedge fund in the world. Ray Dalio is a hedge fund legend.
The title of the post was “Paradigm Shifts”. Ray went into great detail about the different paradigm shifts that have occurred over the last 100 years.
It was an excellent read, and I highly recommend it.
There was one piece of information that was very intriguing to me. I did not know that the two worst decades of stock performance were from 1930 to 1940 and from 2000 to 2010.
Since I was alive for the latter period, I decided to do some digging. I wanted to see how companies focused on disruptive innovation performed during that decade.
If, as I do, you like to invest in disruptive innovation, what I found was very interesting and exciting!
Here are the numbers:
Performance of Each Index, 2000-2010
I chose 10 stocks that represented disruptive innovation, and here’s how they did over that 10-year period…
|Amazon (NASDAQ: AMZN)||+136%|
|eBay (NASDAQ: EBAY)||+177%|
|Apple (NASDAQ: AAPL)||+1250%|
|Illumina (NASDAQ: ILMN)||+784%|
|Priceline.com (now Booking Holdings, NASDAQ: BKNG)||+40%|
|Nvidia (NASDAQ: NVDA)||+262%|
|Intuitive Surgical (NASDAQ: ISRG)||+1500%|
|Whole Foods (now a subsidiary of Amazon)||+431%|
|Netflix (NASDAQ: NFLX)||+3100%|
|Monster Beverage (NASDAQ: MNST)||+9000%|
This small sampling shows the advantages of investing in disruptive innovation. During the second-worst decade in the history of the stock market, these stocks crushed it!
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)