Disruption continues to be the word of the moment. The media sector highlights how new business models can decimate the value of old platforms. Investors are rightfully alert to the redundancy risk associated with established business models and rightfully eager to invest in the leaders of the future. Yet some current commentary suggests that disruption is a new ‘theme’ which investors should gain exposure to at any price, a view NovaPort Capital find overly simplistic.
History shows disruptive businesses and technologies have always emerged. While speedy access to data networks might debatably be driving an increase in the number of disruptive opportunities, it does not logically justify that investors should pay a higher premium to speculate in these opportunities just because there are more of them.
NovaPort Capital take a look at the investment fundamentals behind emerging and distruptive businesses.