How Investing in Innovation Means Future Profits

Disruptive technologies are threatening incumbent old guard - investors need to make sure they are on the right side of innovation to profit, says Fidelity's Michael Sayers

Fidelity International 12 April, 2016 | 3:47PM
Facebook Twitter LinkedIn

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Michael Sayers, director of Research at Fidelity International discusses the investment potential of disruptive innovation.

In an environment where growth is increasingly scarce, companies or sectors that are genuinely innovative attract a premium. Few sectors appear immune to the effects of new technologies, inventions, discoveries and business models and the disruptive impact these can have on pricing power and market share. 

The findings of Fidelity International’s 2016 Global Analyst Survey suggest that this will be one of the key trends that looks set to define the year.  Innovation is spurring growth particularly in IT and healthcare, but elsewhere too.  Innovation can also lead to disruption, so not everyone is a winner. 

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amazon.com Inc3,415.06 USD-0.84Rating
Microsoft Corp307.41 USD-0.27Rating
Roche Holding AG391.80 CHF1.29
SAP SE125.84 EUR1.61Rating

About Author

Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific.