Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.
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.
