Here is a fun piece for a Monday. This blog post is from Barry Ritholtz, talking about how tough it is to predict the future - Why the Apple Store Will Fail. Barry talks about a quote he found from 2001:
"Few outsiders think new stores, no matter how well conceived, will get Apple back on the hot-growth path . . . Maybe it's time Steve Jobs stopped thinking quite so differently."
Ouch! Not only did the author of the quote completely miss the potential of the Apple store, but he also attacked Steve Jobs' innovative thinking, the thing that ultimately made Apple such a successful company. As Barry notes, Apple Stores have the highest revenue per square metre on the planet, double that of second-place Tiffany's.
Our brains are wired to focus on the status quo, because it's a safe and comfortable place. We struggle to picture how true innovation can be applied. When it comes to investing, it is important to find the companies creating innovative ideas because they will be the heroes of tomorrow. The companies that are stuck trying to retain their glory from yesteryear are the ones most in danger of going extinct.