RiskHedge

1 week ago | riskhedge.com | Stephen McBride

In the 1980s, AT&T (T) hired top consulting firm McKinsey to estimate how big the market for cell phones would be in the year 2000. Cell phones were as heavy as bricks. They didn’t work half the time. And they cost $10,000 in today’s dollars. So, McKinsey concluded the market was limited to just 900,000. Off by 108 million. Whoops!Consultants failed to realize phones would get smaller, cheaper, and 1 million times more powerful. They underestimated the power of disruptive innovation.

1 week ago | riskhedge.com | Stephen McBride

In the 1980s, AT&T (T) hired top consulting firm McKinsey to estimate how big the market for cell phones would be in the year 2000. Cell phones were as heavy as bricks. They didn’t work half the time. And they cost $10,000 in today’s dollars. So, McKinsey concluded the market was limited to just 900,000. Off by 108 million. Whoops!Consultants failed to realize phones would get smaller, cheaper, and 1 million times more powerful. They underestimated the power of disruptive innovation.

2 weeks ago | riskhedge.com | Stephen McBride

What if I told you about a stock that’s surged 120X over the past 15 years…Crushed the performance of Apple (AAPL), Amazon (AMZN), Google (GOOG), and Netflix (NFLX)…Is growing sales 30% per year…And yet most investors have no idea it exists. Is that a stock you’d like to buy? Now and again, I stumble upon a great business and think, “Man, I wish I owned this stock.”Axon Enterprise (AXON) is one of those. Its chart is a thing of beauty: How did a stun gun startup crush big tech?

2 weeks ago | riskhedge.com | Stephen McBride

Warren Buffett said, “It takes 20 years to build a reputation and five minutes to ruin it.”In the case of WeightWatchers International (WW), it took 60 years to build a multibillion-dollar empire, which crumbled seemingly overnight. WeightWatchers made billions of dollars selling weight loss plans. As recently as 2018, its stock was trading at $100/share. Today, it’s trading at $0.25/share, and it just filed for bankruptcy two weeks ago.

4 weeks ago | riskhedge.com | Stephen McBride

I’m going to miss Uncle Warren. After nearly six decades at the helm of $1 trillion giant Berkshire Hathaway (BRK-A), Warren Buffett will step down at the end of the year. Buffett is simply the greatest investor of all time. He’s handed investors 5,500,000% gains since 1965. His run will never be topped, at least not in my lifetime. And do you know what his “winningest” investment of all time was? Apple (AAPL). Buffett is sitting on roughly $120 billion in profits since he first bought Apple in 2016.