Buy Disruptive Innovation!

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

Dow -9%
S&P 500 -14%
NASDAQ -34%

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!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

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.)

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Stocks Don’t Discriminate!

Originally published on January 14, 2018.

Since I published The Stock Market is For Everyone, I have heard from several people that they were curious about investing for a long time, but were discouraged from doing so – sometimes even by financial professionals!

Why?  In some cases, they were told that they did not have or make enough money.  Another common response was, “You don’t have enough knowledge of the market.”

So these eager prospective investors would remain curious, but on the sidelines because they didn’t know where to turn to get the information they needed.  They took people’s word that the stock market wasn’t for them.  All the while, their money was not growing.  How sad.

If the stock market is not for these individuals, then who is it for?  Is it for the receptionist earning $35,000 that invested in Abbott Labs, turning $200 into $7,000,000?  What about this story I heard?  A guy took every penny from his divorce in the mid-eighties, invested the entire amount into Apple, and became a multimillionaire?

Let me tell you something, my friend: the market does not discriminate.  It doesn’t care where your money comes from or the dollar amount you invest.  You can go from being rich to poor, or from very little to abundance.  The market doesn’t care.

That’s why I love it, and why you should too.  The market is one of the few things in life that doesn’t discriminate.

Until next time!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

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.)