Managing Technological Disruption Risk in Investments

Technological disruption (as experienced with widespread electrification and the rise of the world-wide web, and imagined for artificial intelligence) is a recurring feature of human history. Such disruptions presents risks and opportunities for investors. How can investors manage such risk? In their February 2024 paper entitled “Technological Disruption and Long-Term Investors: Managing Risk and Opportunities”, Alistair Barker, Ashby Monk and Dane Rook describe approaches to managing investment risks from technological disruptions of varying scales and velocities. Using outputs of interviews with 20 elite long-term investors worldwide, they find that:

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