Be long the disruptors, and short the disrupted.
It’s one of the biggest themes in the investment world over the past 10 years.
You know you could have bought Netflix stock in 2002 for $1.07 per share? Today shares are worth over $320 per share. That’s nearly a 30,000% gain.
Long Netflix and short Blockbuster is a great example of being long disrupters and short the disrupted…
Below is a chart which compares the share price returns from 2002 until 2011.
In the late 90s and early 2000s the Internet took the world by storm. Everyone wanted to be online.
Most businesses that were too afraid to adopt to the new world went the ways of Blockbuster and eventual bankruptcy. But where is the next big disruption on a global scale?
Is it Crypto? Cannabis? 5G?
Those manias have already come.
We have now entered Internet 2.0, “The Internet of Things”, or IoT for short.
The Internet of Things will give us more than just the ability to watch streaming shows on Netflix or Disney+.
The Internet of Things is going to give big business the ability to change how they manage day to day operations…
Right down to the minutia and finer details, to reduce operational costs.