2 Ways Disruptors Can Make You Rich
Sometimes I stumble across an old article of mine that seems more potent now than it did at the time. A little more than three years ago -- Jan. 8, 2013, to be exact -- I offered up an article on three disruptive growth stocks that I thought were worth buying at the time. It turned out to be pretty sage advice.
Zipcar had just announced that it was being acquired by car-rental company Avis Budget Group, sending shares of the leading car-sharing company 48% higher. Yes, before the ride-sharing craze we had a booming trend where folks were renting from a fleet of vehicles by the hour. Zipcar was disruptive to traditional auto-rental giants, so it wasn't a surprise that one of them would pay a premium to take it out.
There are three scenarios for disruptive growth stocks. They can be acquired, as we saw with Zipcar. They can grow over the years, cashing in on creative approaches to existing pressure points. They also often fail, and when that happens it's obviously not pretty. No one said investing in disruptors doesn't come with big risks if you wind up stuck with what's behind Door No. 3.
Source Fool.com
