Industry Disruption Is Creating A Minefield Of Value Traps For Investors

By Bryan Hong – full bio below A growing group of technology companies, including Amazon, Alphabet, and Uber, are creating large waves of disruption in multiple industries The market thus far continues to reward these companies and discount the valuations of incumbent firms within the industries being disrupted, creating what appear to be a number of deep-value opportunities Most of these investments are value traps, and investments in these firms often reflect a misunderstanding of how much more rapidly technological disruption is occurring than before [schloss] The term “disruption” has become a popular expression to describe a specific type of…