The very heart of PowerTrend investing recognizes the intersection of several powerful forces — economics, demographics, psychographics, technology, policy and others — that, when combined, give way to a powerful force that shifts the what, where and how people and businesses go about their daily activities. At the very core, companies, be they business-to-business (B2B) or business-to-consumer (B2C), need to respond to the changing landscape and adapt their business models. If they donâ??t, odds are they will shift from a once-thriving business to one that is struggling and likely to be left behind and replaced by others.
From an investor perspective, it is the companies that are able to adapt and, even better, thrive in response to the PowerTrend-generated shift that we want to own. As you can probably guess, we want to avoid the ones that are vulnerable and likely to be left behind.
Oftentimes, making the change can be difficult, painful even, and we have to accept that not all companies can make the change and that some will fail while trying. Most will struggle as they try to change.
Read more about how the evolution of competing companies can lead to profits for you at Eagle Daily Investor.