--- title: The Power of Evolution to Create Long-Term Opportunity description: Discussing the power of evolution to create long-term investment opportunities image: https://insights.evolutionarytree.com/hubfs/Blog/2021.07%20ETree%20Blog%2036%20LinkedIn.png --- [![Evolutionary Tree Capital Management](https://insights.evolutionarytree.com/hubfs/Evolutionary_Tree_Capital_October2019/Image/logo.png)](https://evolutionarytree.com/) - About - [Our Firm](https://www.evolutionarytree.com/content/about-our-firm) - [Our Mission](https://www.evolutionarytree.com/content/our-mission) - [Key Strengths](https://www.evolutionarytree.com/content/key-strengths-evolutionary-tree) - Philosophy - [How We're Different](https://www.evolutionarytree.com/content/What-Differentiates-Us) - [Core Beliefs](https://www.evolutionarytree.com/content/core-beliefs) - [Our Philosophy](https://www.evolutionarytree.com/content/our-philosophy) - Investment Approach - [Approach](https://www.evolutionarytree.com/content/investment-approach) - 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[Subscribe](https://info.evolutionarytree.com/subscribe-to-the-evolutionary-tree-blog) - [Contact](https://www.evolutionarytree.com/content/contact-us) # The Power of Evolution to Create Long-Term Opportunity [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Finsights.evolutionarytree.com%2Fblog%2Fthe-power-of-evolution-to-create-long-term-opportunity%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528304.fs1.hubspotusercontent-na1.net/hub/7528304/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/twitter-color.png?width=24&name=twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Finsights.evolutionarytree.com%2Fblog%2Fthe-power-of-evolution-to-create-long-term-opportunity%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Finsights.evolutionarytree.com%2Fblog%2Fthe-power-of-evolution-to-create-long-term-opportunity%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check+out+https%3A%2F%2Finsights.evolutionarytree.com%2Fblog%2Fthe-power-of-evolution-to-create-long-term-opportunity%3Futm_medium%3Dsocial%26utm_source%3Demail&body=Check+out+https%3A%2F%2Finsights.evolutionarytree.com%2Fblog%2Fthe-power-of-evolution-to-create-long-term-opportunity%3Futm_medium%3Dsocial%26utm_source%3Demail) Most investors know that the economy is experiencing accelerating change and intuitively understand that this change can create both opportunity and risk. But how does this change play out, and what drives this process? Most importantly for investors is the question: How can I harness this change for long-term value creation? We have developed a unique model around our evolutionary lens approach that tracks the progression of change to its root cause and source: technology evolution and new innovations. In the Age of Innovation, all roads lead back to a series of innovations that drive, first, Technology Evolution, shown in the lower left of the chart below. Think of technology innovations as new building blocks or components—often including new materials, hardware, software, or processes—that when combined in innovative new ways lead to next-generation products or services. This leads into the next level up, which is the evolution of product and service offerings, or Product/ Service Evolution. Innovative companies create next-generation offerings that, in turn, displace older-generation products or services. Over time, leading innovators themselves evolve through Company Evolution. This company evolution may involve a changing mix of products, or a shift from being a “point solution” company (having only one product or service) to creating a full “suite” of offerings. The highest level of company evolution is becoming a “platform company,” where the company can extend into adjacent markets with a whole ecosystem of partners building on its platform. As companies compete in the broader landscape, they drive Ecosystem/Industry Evolution. Competing innovations, over many years, create new industries as well as drive the structural evolution of existing industries. Eventually, these dynamics lead to Economy Evolution, as the mix of dominant industries changes over decades. Our mission is to help navigate this change and evolve portfolios over time so that they are positioned to systematically benefit from these types of evolutionary changes. ## The Long-Term Power of Evolution: Driven by Bottom-Up Innovation [![2021.07 ETree Blog 36 Chart](https://insights.evolutionarytree.com/hs-fs/hubfs/Blog/2021.07%20ETree%20Blog%2036%20Chart.png?width=800&name=2021.07%20ETree%20Blog%2036%20Chart.png)](https://insights.evolutionarytree.com/hubfs/Blog/2021.07%20ETree%20Blog%2036%20Chart.png)   **This blog is an excerpt from our thought piece *The Power of Evolution to Create Long-Term Opportunity.* To continue reading, please download the PDF below, where we discuss specific company examples to bring to life the power of evolution at different levels.** ***[![New call-to-action](https://no-cache.hubspot.com/cta/default/4802837/01a6a78b-8d71-4b4d-b971-c12151984106.png)](https://cta-redirect.hubspot.com/cta/redirect/4802837/01a6a78b-8d71-4b4d-b971-c12151984106)*** ###### *This site and the content within is intended for US-based investors only.* ###### *The information and views expressed herein are provided for informational purposes only and do not constitute investment advice. If performance is shown, it is based on a composite of actual trading in client accounts, but is not necessarily reflective of the performance of any individual client account. Differences in account size, timing of transactions, and market conditions prevailing at the time of investment may lead to different results, and clients may lose money. Differences in the methodology used to calculate performance may also lead to different performance results than those shown. Past performance does not guarantee future results. Any projections, outlooks, or estimates contained herein are forward looking statements based on specific assumptions that are current as of the date indicated, subject to change without notice, and should not be construed as indicative of any actual events that have occurred or may occur. The inclusion of particular investments is not intended to represent, and should not be interpreted to imply, a past or current specific recommendation to purchase or sell a security and should be considered in the context of an overall portfolio. Investing in equity securities involves risk and principal loss is possible. Nothing contained herein constitutes investment, legal, tax, or other advice and should not be relied upon in making an investment or other decision. Investors should always obtain and read up-to-date investment services material before deciding whether to appoint an investment advisor.* See our Thought Pieces on Innovations, Evolutionary Shifts, and Secular Trends. ** [Click Here](https://evolutionarytree.com/content/thought-pieces)** [![Evolutionary Tree](https://insights.evolutionarytree.com/hubfs/Evolutionary_Tree_Capital_October2019/Image/footer-logo.png)](https://evolutionarytree.com/) ## GET IN TOUCH 1199 N. 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