Innovative business, great or gripe?

Was touching the ground and chanced upon this robotic delivery machine by $Grab Holdings(GRAB)$. While this isn't a recommendation,it made me think about businesses that regularly innovate vs those that do not need to innovate so often.

Innovation is the way

Innovation allows for expansion into new spaces. Imagine if full robotic delivery goes full swing, what will happen? I suppose in the most ideal state, all our food will arrive at punctually and at the right temperature. Delivery of letters, post items and other confidential materials will be effortless as well. 

Innovative companies like $Apple(AAPL)$and $Taiwan Semiconductor Manufacturing(TSM)$will bring forth new blue oceans and create new spaces that was once not possible. For example, who would have thought that a watch could do so much? (Reference Apple Watch) Who would have thought that chips could go so small? (5nm to 3nm in the future)

Innovation is sexy. It brings progress and it opens new possibilities. Thus some investors love investing in innovation.

Innovation, go away

However the flip side argument can equality be true. Investing in innovative companies poses many risks as well. What happpens if it fails? For example, this robot broke down in the heat. 

And as it is in it's early stages, staff was required to accompany it in its autonomous travel. This translates to high capital expenditur and possibility of loss of earnings due to necessary cash burn for innovation.

Some types of companies like $Coca-Cola(KO)$ does not require that much innovation. I mean you just want to drink the same drink right? Of course KO spends more on marketingto keep its brand afloat. Which is another issue altogether.

So how?

Should we invest in innovation or look for tradition? Ultimately, you need to do your due diligence and examine your own investing style.

Innovative companies bring great upside, but also requires capital reinvestment and high cash burn. While traditional companies are borning but add stability.

For me I have my own mix of innovative and traditional companies. 

What about you? Share with me I like to learn from you. 

@CaptainTiger@MillionaireTiger@TigerStars