Innovation may adversely impact investment decisions

All investments are based upon a forecast that the business or the asset will last for a period of time. With advances in technology, these forecasts may be proven wrong. A solid looking business today may find itself without customers because they’ve jumped to a competitor with a better product or service.  Business may find itself with an asset that can now be purchased for half the price or less.

This uncertainty about how long a business will last or whether equipment may become obsolete causes a hesitation in deciding to invest or buy a…