Wednesday, September 08, 2021
The last 100 years of market history makes an open-and-shut case:
America’s biggest stock winners come from companies riding massive cultural, behavioral, paradigm-smashing trends.
Conversely, history’s biggest losers are often companies on the wrong end of the very same trends.
Ask yourself, which of the two would you rather have in your portfolio?
The answer is easy:
The options in black are forever grounded — while the ones in red hold enough profit potential to blow the cap off a mountain.
From the invention of Ford’s assembly line to the evolution of GPS…
From the discovery of natural gas fracking to the advent of offshore oil drilling…
From surgical robots to big-box retailers…
Ride-sharing apps like Uber to cancer-zapping immunotherapies…
Genetic cloning to wireless internet service…
All the above (and many, many others) represent acts of creative destruction.
And they could have supercharged any portfolio.
A Little Destruction Goes a Long Way
Let’s say you invested $1,000 in a portfolio of stocks, spread evenly among 10 companies.
And in this theoretical example, let’s assume you take a modest 5% loss on nine out of the 10 stocks every year (for a 90% loss-rate. Ouch).
But one of your 10 stocks is in the midst of a creatively destructive act, thus earning triple-digit returns.
In this scenario, despite all your losers…
A starting stake of $1,000 would grow to $14,409 in five years, representing a 1,341% net gain.
Simply by having one “creatively destructive” company in your portfolio.
If that doesn’t make this an open-and-shut case, what will?
Go ahead, see for yourself…
iPhone Killer Coming
Why am I bringing this up today? It’s simple:
Few companies have the guts to kill an iconic… admired… refined… brilliantly conceived… historically significant… multi-billion-dollar business… ON PURPOSE.
But I’m convinced that Apple Inc. (AAPL) is on the verge of doing exactly that.
Specifically, in what might be the greatest act of creative destruction in business history, I believe it’s planning to kill the iPhone.
In its place, I believe the world’s biggest company is preparing to launch the “Next Big Thing” in tech: a world-changing version of Augmented Reality (AR) glasses.
Doubt me? Don’t! Even Apple’s CEO has come out and publicly stated that AR is critical to the company’s future.
But here’s the rub: to propel its AR glasses into the mainstream, Apple first needs to acquire the necessary technology.
We’ve seen this movie before — and it had a happy ending.
To make features like biometric authentication, Touch ID, and Apple Pay truly ubiquitous, Apple first had to acquire the critical enabling technology from a tiny micro-cap called Authentec.
And yes, Authentec was a prior recommendation of mine.
By anticipating Apple’s need for Authentec’s hardware, my readers were able to score a quick 200% gain.
I believe the same short-term profit potential exists by identifying companies making critical AR components that will be incorporated into Apple’s device. So don’t miss out!
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Ahead of the tape,