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 firm competition that can...