Disruption Investor Review
This is a guest post by my friend Mark. Sometimes, it is good to have other people’s opinions on stock investing/trading services!
Be sure to check out my YouTube channel for more reviews on stock alerts and investing services!
Disruption Investor is a monthly stock trading newsletter published by RiskHedge which aims to help investors build lasting wealth by finding and profiting from companies that are “disruptive” in today’s marketplace.
Disclosure: There are some affiliate links below, but these are all products I highly recommend. I won’t put anything on this page that I haven’t verified and/or personally used. I may get paid a commission if you buy anything through these links, at no extra cost to you.
Disruption Investor Review
Fast Facts
- Author/ organization — Stephen McBride
- Cost — $99/year with a 30-day money-back guarantee
- Sales page — Risk Hedge
- Incentives — special reports for new subscribers based on current promotions:
- Amazon’s Kryptonite: Collect Up to 1,000% Profits on the Internet’s New Tollbooth
- “App”: 1,000% Gains on the Healthtech Revolution Coming to Your Smartphone
- Cyber Defense 7-Bagger: Go for 700% Profits from Defense’s Disruption
- 3X Profits on 3D Computer Vision Technology
- 5G: Is the Boom All Over Except for the Hype?
- The Battle Over Your Fridge: The Surprising Disruptor in the Coming $1.5 Trillion Dollar Grocery Wars
- Schedule — Digital-only subscription published on the first Thursday of each month
- Contact — 844-848-8835 (US) or 602-883-1999 (international) → support@riskhedge.com
Pros
- Clear, concise writing with compelling stocks you didn’t know were potential winners
- Due diligence to uncover the next Amazon or industry game-changer
- Subscription includes newsletter, portfolio, a library of special reports, and weekly email
Cons
- Companies that appear to be disruptive could stall or fail to reach their full potential
- Stocks could take years to reach your desired profit zone
- Current stock recommendations may be too expensive for investors with limited capital. Of the 15 stocks in the portfolio, the current low is $16.87/share and the current high is $372.12/share. The average current stock share price is $115.81.
Real Subscriber Review
Below is my explanation, evaluation, and experience with Disruption Investor as a paid subscriber.
Why subscribe to Disruption Investor?
Because the world is changing… quickly. New markets like cryptocurrency are rising quickly.
Meanwhile, iconic American companies are shuttering their business, wiping out shareholders in the process (think Toys R Us).
Investors need someone to make sense of the rapid changes in the markets. RiskHedge claims to be on the bleeding edge of these new, disruptive industries which will potentially change the complexion of the culture.
Included with each Disruption Investor subscription is a weekly email called the RiskHedge Report. Stephen McBride says…
I guarantee you’ve never read anything like it. Each week, I’ll write to you with actionable insights explaining:
- What we’re investing in now, to help you grow your wealth
- My latest analysis on breakthrough technologies, so you can get into the best investments early
- The specific stocks, cryptocurrencies, and commodities I recommend buying right now, so you know exactly how to position your portfolio
- Which investments I’m avoiding, so you can sidestep dangerous disruptions
- Risks I see coming, so you can prepare in advance
Time will tell, but Disruption Investor appears to be a solid tool to help investors pick future successful companies.
Disruption Investor Review: Who is Stephen McBride?
Born in Dublin, Ireland, Stephen is a professional fund manager and the chief analyst at RiskHedge.
While working at a billion-dollar financial institution in New Zealand, Stephen realized that corporate life wasn’t for him and began his journey seeing the world.
He’s lived on four continents and spends most of his time in the United States & Ireland.
Disruption Investor Review: What is a Disruptor company?
According to Stephen McBride, “disruptors” are companies that remake or transform entire industries. Disruptors invent the future not by competing with existing market leaders, but by destroying them with new innovation.
McBride gives examples of disruptors:
- Southwest Airlines (LUV) disrupted flying when it pioneered discount air travel. It forced the whole industry to rethink their business strategy and slash ticket prices. From 1980 to 1999 it handed investors 7,450% gains.
- Starbucks (SBUX) got America hooked on high-end coffee. It normalized paying $6 for a latte. Although it spawned a dozen competitors, Starbucks still managed to hand investors 9,050% gains from 1992 to 2012.
- Intuit (INTU) disrupted personal finance. Through its development of do-it-yourself financial programs QuickBooks and TurboTax, it freed millions of Americans from having to hire an expensive accountant. Investors who got in around 1993 collected gains of 2,460%.
The theory of Disruption Investor is that there are more opportunities now to make profits in disruptive stocks than ever before because we are living in one of the most disruptive periods in history.
Disruption Investor recommends stocks for established companies with a market cap of $5 billion or more which have the potential to build sustainable wealth over time.
What is the investment philosophy behind Disruption Investor?
Disruption Investor looks for five financial clues that suggest a company might disrupt an industry leader.
You can read more about those guideposts once you subscribe, but a quick glance at the chart below illustrates how new companies disrupt old companies (think of what Netflix did to Blockbuster).
Stephen McBride explains the Disruption Investor strategy this way:
Now, imagine a fourth column labeled “2024.” Based on what we now know about how dominant companies are displaced, many of today’s top 10 companies might not be on this list in 2024. As many as seven or eight of those stocks will perform poorly in the future, which means that Disruption Investor believes most of the biggest and richest companies are typically bad investments!
Glance up at the 2018 list once more. You’ll find it reads like a “who’s who” of the most popular US stocks today: Apple, Microsoft, Google, Facebook, Johnson & Johnson, J.P. Morgan, Berkshire Hathaway. These are the stocks everyone pays attention to. They’re the stocks your barber or your taxi driver brag about owning. Yet the evidence is clear: You’re better off avoiding most of the stocks in that column. Seven or eight of the 10 are likely to tread water at best over the next couple of years. More likely, they’ll lose money. In fact, I went back to the ‘60s and studied how often winners stay on top for more than a few years. The answer is almost never. You see, disruption is the rule, not the exception. Powerful companies wither over time. It’s a fact of markets. It’s been happening for 50+ years. And this trend is accelerating as the world continues to change faster and faster.
I’ll repeat: Owning the most popular, most talked-about, and largest companies in the world is a money-losing strategy. But you can flip this great danger into your great edge. It all comes down to the lifecycle of disruptive businesses. You want to sell the tired old giant companies that have already peaked and are sure to fall. Instead, you want to own the “rising stars.” You want to own the stocks that will make the list in 2024.
What companies are in the Disruption Investor portfolio?
Disruption Investor’s current portfolio includes 6 established brands all of us know, plus 9 newer companies most people don’t know.
The full portfolio is part of the paid service, but I was curious to learn more about the 9 newer companies.
When I read the Disruption Investor portfolio I used TipRanks to research each of the 9 stocks.
I was pleasantly surprised to learn the TipRanks analysts gave 7 of the 9 Disruption Investor stocks either a “strong or moderate-buy” rating.
Cross-checking McBride’s selections with other analysts gave me confidence in my due diligence.
How have Disruption Investor stocks performed?
Disruption Investor’s portfolio includes stocks they have held between 5/12/19 and 8/6/2020.
Of their 15 current stocks, only one has a negative total return (-4.85%). The remaining 14 stocks have positive total returns with an average total return of 29.95%.
The highest total return is 78.46%. Please note these returns were calculated at the time this article was written in late August 2020 using current data posted on the RiskHedge website.
Is the service worth the $99 annual subscription fee?
As with many things in life, the value of a service is personal and unique to each individual.
One way I determine value is to calculate how rapidly a stock service pays for itself through investing in the recommended stocks.
The lowest-performing stock in Disruption Investor’s current portfolio has a total return of 2.51%.
The stock was added to the portfolio in early August 2020 and hasn’t performed as well as other stocks.
However, a 2.5% return is certainly good enough to justify a $99 subscription fee since the profits would pay for the newsletter.
Another way I determine value is by how much I learn about investing in stocks. I make a distinction between stock “alert” services, and stock “education” services.
Disruption Investor feels more like a stock education service packed with useful information about the market, investing, and future growth.
I enjoy reading about emerging trends and where the markets are moving.
Disruption Investor is ideal for people who want to think long-term, down the road, and around corners. It isn’t a crystal ball, but it’s a good set of binoculars.
One more personal note — I’ve already decided to invest in my first stock recommended by Disruption Investor.
My personal strategy is to trade using three separate brokers, two short term, and one longer-term.
I purchased shares of one of the newer companies in the Disruption Investor portfolio.
I’ve seen the stock listed many places and decided to pick and hold it for a few years while the company disrupts air and space travel.
Let’s hope Disruption Investor (and I) made a good choice!
Disruption Investor Review: Conclusions
Final Grade — A+
If you are an investor looking for an intriguing collection of rising companies with strong upside potential, and you have the patience to wait as new industries emerge, then Disruption Investor is an excellent source of stock information.
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