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Podcast: ML - The way the world works - analyzing how things work
Episode: WHY DO INVESTORS AVOID INNOVATION AND GROWTH ORIENTED COMPANIES
Description: The main reason behind this is that many investors prefer to invest in "safe" businesses They believe that safer investments are less risky and give high returns as compared to growth businesses This assumption is incorrect and it is supported by the performance of growth-oriented companies during the financial crisis
Growth companies are safer than other businesses because they have solid management, strong brands, and loyal customers Therefore, in a recession, customers may not increase their spending, but they will still buy from a company which has a great reputation They may spend less, but the company still earns higher...