Obsolescence Risk

Fundamentals of Market Investing by Adam J. McKee

Obsolescence risk is the risk that a company’s business is going the way of the dinosaur.  Very, very few businesses live to be 100, and none of those reaches that ripe age by keeping to the same business processes they started with.  The biggest obsolescence risk is that someone may find a way to make a similar product at a lower price.  With global competition becoming increasingly technology savvy and the knowledge gap shrinking, obsolescence risk will likely increase over time.

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