An era of disruption: How to invest?

An era of disruption: How to invest?

It is a common law of investing that the most rewarding opportunities are often the riskiest, and that is certainly the case with today’s hottest sector, disruptive technology. The rewards of investing in innovative tech stocks have been enormous, and the most evident example would be Tesla, with its share price skyrocketing from $90 in 2020 to $900 in early 2021. However, so are the risks, as the electric car maker’s stock fell nearly 40 per cent from its all-time high this year, punishing investors who bought in late. Disruptive means radical change to an existing industry or market due to technological innovation. It introduces a technologically enabled new product or service that potentially changes the way the world works. To cite an example, in the late nineteenth century, three innovation platforms evolved at the same time and changed the way the world worked. Thanks to the telephone, electricity and automobile launch, the world’s productivity amplified while costs plunged, unleashing demand across sectors. Today, the global economy is undergoing the most significant technological transformation in history thanks to multiple innovation platforms evolving simultaneously- artificial intelligence, genomic revolution, blockchain, among others. History has shown that new emerging technologies which transform major