Investing in Innovation: A Conversation with Terry Gardner

In a recent interview with Jason Raznick, CEO of Benzinga on the Raz Report podcast, Terry Gardner, Investment Manager and Portfolio Strategist at CJ Lawrence, shared valuable insights about innovation-focused investing. Their wide-ranging discussion touched on various market-related topics, including Terry’s unique approach and potential investment opportunities in innovation. Let’s dive into the key takeaways:

The “Innovation at a Reasonable Price” (IRP) Strategy

Terry advocates for a strategy he calls “Innovation at a Reasonable Price” (IRP). This approach focuses on investing in companies that drive innovation and disruption while maintaining strong financials. It’s a balancing act between embracing the potential of innovation and ensuring financial stability.

Embracing Giants of Innovation

During the interview, Terry highlighted several companies as potential opportunities in the innovation space. Meta (formerly known as Facebook), Intuit, and Rockwell Automation are examples of businesses that have been at the forefront of technological innovation, especially in the realm of virtual reality, augmented reality, and leveraging AI for growth. While discussing innovation giants, Amazon couldn’t be left out. It stands out not only for its dominant position in retail but also for its continuous innovation efforts, backed by significant research and development spending.

Earnings Potential over Percentage Gains

During the episode, Terry also offers valuable advice to investors: Don’t fixate solely on percentage gains. Instead, consider the absolute earnings potential when evaluating investment opportunities in innovative companies. This perspective ensures a more comprehensive assessment of the long-term growth prospects of your investments.

Innovation-focused investing is not just a buzzword; it’s a tangible strategy that can yield substantial returns. Terry Gardner’s interview with Jason Raznick sheds light on the importance of balancing innovation with financial stability. As we navigate the ever-evolving landscape of investments, embracing a forward-thinking approach like IRP can lead to promising opportunities and a brighter financial future.

Listen to the full episode here.