@Deltaneutral, I definitely agree that businesses that must re-invent the wheel w/ each product to grow are risky investments, but the two stocks that I have that have been doing the best are Apple and Nintendo, both companies rely heavily on innovation to grow.
Both have been turnaround stories. Apple risked its last days by betting big on the iPod, and now new consumer segments like the Apple TV and iPhone. This is signficantly riskier than the Dell strategy of doing more of the same but to a larger scale at lower costs. This has also become their downfall.
Nintendo is probably the best play in the video game industry right now and it is all about coming up with new IPs or new gameplay for old IPs rather than just recycling IPs annually.
Of course, there are tons of companies that take risks with new products and fail completely. Those companies you don't hear about so much.
5
Both have been turnaround stories. Apple risked its last days by betting big on the iPod, and now new consumer segments like the Apple TV and iPhone. This is signficantly riskier than the Dell strategy of doing more of the same but to a larger scale at lower costs. This has also become their downfall.
Nintendo is probably the best play in the video game industry right now and it is all about coming up with new IPs or new gameplay for old IPs rather than just recycling IPs annually.
Of course, there are tons of companies that take risks with new products and fail completely. Those companies you don't hear about so much.