Companies' stock CAGR returns since releasing revolutionary products.

Definition of Revolutionary products

• A revolutionary product is typically characterised by its ability to introduce significant and groundbreaking changes or innovations to an industry, market, or people's lives. (source: Google Bard)

Variable to note

• CAGR cutoff date is March 2023

• source: Google Bard

Observations

CAGR of companies till cutoff date since releasing revolutionary products.

• Apple

• 27% since release of iPod in 2001

• 32% since release of iPhone in 2007

• 30% since release of Macbook Air in 2008

• Amazon

• 37% since release of AWS in 2006

• Microsoft

• 20% since release of Azure in 2010

• Tesla

• 50% since release of Model 3 in 2017

Honorable mentions

• Netflix

• 25% since introducing streaming business model in 2007

• Adobe

• 24% since introducing subscription model for their products in 2013

• Airbnb

• Introduced a revolutionary sharing economy model,

• but is excluded from this list since the company is only listed less than 5 years.

• Uber

• Also introduced revolutionary sharing economy business model, but its not a sustainable/ scalable business model from a cashflow perspective.

Conclusion

• When a company's underlying fundamentals are good,

• Investing in them when they introduce revolutionary products to the market may be a good strategy.

• Especially when they have track records of producing revolutionary products.

• Plus if they can come up with innovative business models to capitalise on it, it will be even better.