Disruptive forces are wreaking havoc across the global business world. But not all disruption is fatal. Lots of companies are facing the threat—and thriving. We think they deserve more credit than investors are giving them.
Disruptive innovation is a red-hot investment theme today, and investors can’t seem to get enough of the technology goliaths leading the onslaught. The so-called FAANG stocks—Facebook, Apple, Amazon, Netflix and Google-parent Alphabet—have strongly outperformed the market this year, notwithstanding the recent sell-off.
These juggernauts of disruption continue to demonstrate that their spectacular growth may be sustainable. Yet we also think the market is underrating the ability of other companies to adapt to unfolding changes. Plenty of them are proving more disruption-resilient than generally acknowledged.
Here are three common beliefs about disruption and examples of companies that are defying them. We view these overlooked pockets of resilience as fertile investment hunting grounds.
