There are a few stocks that come along every once in a while, arriving to change the way an old-fashioned industry works and operates. When investors get lucky enough to find one of them, it can typically bring on life-changing returns, even retiring them from active work if they choose to go that route. With this in mind, here are the two main ingredients investors need to check off their list in the search for such an opportunity.
First is technology implementation, which changes the way an industry works. One example is how Uber changed how ridesharing works or how Zillow expedited the housing market’s sales process. The second factor, preferable for an investment, is a low-cost subscription business model, giving ample room for management to navigate market cycles and still be able to count on stable and predictable cash flows for reinvestment back into growth.
