A lot of times when you listen to entrepreneurs speak, they talk about disruption. When VC’s make speeches, they talk about investing in disruption. Disruption is an overused and misunderstood word in the start up world.
The reason the word is so misunderstood is that it depends on a lot of variables. No industry is the same as the other. What’s disruptive in the steel market might not be disruptive in fast food. Sometimes it just helps to think about the chain of distribution in an industry and see how the potential business changes it. Other times it’s through processes. Examples are probably easier to illustrate.
Here are three companies that I am invested in that are disruptive. They are disruptive in unique ways, all in different industries. One is a process, one is a change in distribution, one is a tech company.
First, let’s look at YCharts. They have a free product and a Pro product. The Pro product isn’t that expensive. If you are trading stocks you should sign up and try it. What’s amazing about Ycharts is that it revolutionizes the research process for stocks and ETFs. You can manipulate differentiated data with your fingertips. It saves you a lot of time. It allows you to pick up a stock and look at it in three dimensions right on your computer. They also have some top financial writers that do research for them, and you get that for free too. Here is a chart of 3M ($MMM) graphed with a specific index.
Is there a correlation?
With more research you can decide.
Ycharts disrupts the research process that is currently standard in stock research. I can’t wait until they add futures.