Avoid the Innovation Trap

[The Bleeding Edge]( Avoid the Innovation Trap By Colin Tedards, Editor, The Bleeding Edge $29.4 billion… That’s how much Apple spent on research and development over the past 12 months. The result? An 80-minute, high-gloss presentation showcasing the company's lightest-ever pro model phone. The reality? It’s one gram lighter than the previous model. Source: X.com/@theapplecycle For context, one gram is roughly the weight of a paperclip. In the tech world, there's a growing trend to romanticize innovation. But innovation is NOT the linchpin of successful investment in technology. After all, despite splurging nearly $30 billion to shave just one gram from the weight of the iPhone, Apple is still the most valuable company in the world. And shares of the company are up 203% over the past five years. An even more crucial element of tech is hiding in plain view. But it goes unnoticed as the industry focuses on innovation. Let me explain... Recommended Link [“Stock Shock” Hits America October 1st (Prepare Now) – Multimillionaire Trader]( [image]( Over $13 trillion in household wealth has been wiped out… And stocks STILL cost DOUBLE what they did before the 2008 crash… But is the best solution really to just sit in cash? No. Over the last 4-decades, our firm has publicly predicted the fall of the Soviet Union… the Dot-Com collapse… the 2008 crash… Trump’s presidency… and the 2020, 2022, and 2023 crashes. Now, millionaire Jeff Clark is issuing a [new WARNING]( unlike anything we’ve seen in years. A [“Stock Shock” is coming to America]( that could be the worst OR BEST thing for your investments depending how you act BEFORE October 1st. Jeff’s also revealing the [ONE secret to getting ahead of this new shock]( and profiting in any market condition – closing huge gains in only 8 days. [Click Here to See Jeff’s New WARNING.]( -- Avoid This Mistake The idea that a tech company needs to be an innovator is not just misleading. It can be dangerous. Take social media giant Meta. It has virtually monopolized our online social interactions with Facebook, Instagram, and WhatsApp. But it didn't invent social media. A long-defunct company nobody remembers anymore called SixDegrees did. But here we are, two decades later, and Meta is still the dominant force. It understood the landscape, bought Instagram and WhatsApp, and cornered the market – all without being an innovator in the purest sense. Recommended Link [Bear or bull market, this highly successful trader has shocking new forecast]( [image]( Nobody believed Larry Benedict’s prediction in February 2020. The DOW plunged 3.5%, and he told CNBC, “It seems like there’s much more to come.” Within a month, the market plummeted 34%. Then, nobody believed Larry at the start of last year, either. He predicted that “all the indexes will be negative for the year,” with the Nasdaq leading the way. Once again, he was spot-on. Anybody who followed his recommendations could be well in the black. Now, for the first time, Larry’s coming forward to share a brand-new forecast. [Click here to watch his interview right now.]( -- On the flip side, you have Snapchat. It’s a platform of true innovation. Innovations including augmented reality filters, disappearing messages, and “stories” (collections of photos and videos that users can share with friends) emerged from Snapchat's labs. But these are features, not foundational business models. And although they’re innovative, have they transformed Snapchat into a market dominator like Meta? No. Snapchat has 397 million users versus Meta’s 3.8 billion. And over the past five years shares of Snapchat are down nearly 4%. Shares in Meta are up 76% over the same time. Snapchat, for all its creative prowess, is a niche player. It did not make the leap from innovator to market leader. This is common in tech where features can be copied, improved upon, or simply made obsolete in the blink of an eye. What does all this mean for you as a tech investor trying to make money? It means you should be wary of the Innovation Trap. It’s the lure of investing in a company solely because it’s breaking new ground. As Snapchat proves, being an innovator is not an automatic ticket to market dominance or long-term profitability. Recommended Link [Putin’s New Move a Threat to 124 Million U.S. Bank Accounts]( [image]( Putin knows he can’t win a shooting war against America. So instead of attacking us with traditional weapons… He just dropped [this “financial nuclear bomb” on America]( that could wipe out as many as 124 million U.S. bank accounts, including YOURS. If you have any money in the U.S. banking system… I urge you to [click here and learn how to prepare.]( -- Billionaire investor Warren Buffet once said: “First come the innovators, then come the imitators, then come the idiots.” Sometimes, the imitators – and even the idiots – wind up laughing all the way to the bank. So, the next time you consider investing in the latest "game-changing" tech firm, remember it’s far more important to have a business model that works than to be innovative. Don't get too caught up by the allure of innovation. Instead, consider the big picture – from market potential and competition to revenue models and profitability. Apple and Facebook often face scrutiny for either imitating innovative features or lacking them altogether. But both firms continue to outperform their competitors. This proves that a stock's success isn't solely anchored to innovation. Often, it's the less glamorous factors such as profit margins, cash flow, and stock buybacks that drive share prices upward. Regards, Colin Tedards Editor, The Bleeding Edge --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. IN CASE YOU MISSED IT… [Reverse ‘money machines’ popping up across America]( Machines like the ones in the picture below are popping up all across America. If you’ve been to a concert venue, stadium, or airport, you’ve almost certainly walked by one without knowing. The experts are calling it a ‘Reverse ATM’. They’ve been installed at places like Citizen’s Bank Ballpark in Philadelphia… They’ve even been used at the Super Bowl. Why are these machines suddenly appearing out of nowhere? And what does it mean for your money? We’ve recently arranged an interview with former Goldman Sachs managing director, Dr. Nomi Prins, to get her take. There’s nobody in America who’s more aware of the inner workings of the banking system. In the interview, [Dr. Prins explained these strange ‘reverse ATMs.’]( And she said she expects them to play a key role this Summer as our nation’s financial system is overhauled for the first time since 1971. According to her research, many Americans will be blindsided by what’s to come. BUT, folks who understand the ‘Reverse ATM’ phenomenon before it becomes obvious to the average American could actually profit in the weeks ahead. To help folks prepare, she’s recorded a briefing that explains exactly what she sees coming, how it will play out, and how much time you have to prepare. [Click here now to see Dr. Prins’ free presentation.]( [image]( [Brownstone Research]( Brownstone Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.brownstoneresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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