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Invest Like the Best with Patrick O'Shaughnessy cover image

Nico Wittenborn - Finding the Adjacent Possible - [Invest Like the Best, EP.372]

Invest Like the Best with Patrick O'Shaughnessy

NOTE

The Power of the “Adjacent Concept” in Innovation

The concept of 'adjacent possibilities' from evolutionary biology, as popularized by Johnson's book 'How We Got To Now,' emphasizes that innovation often arises from combining existing possibilities rather than making giant leaps. This concept suggests that breakthrough ideas are often a result of specific combinations happening at a particular time. Successful investments and technological advancements often emerge when the conditions are ripe for these adjacent possibilities to come together. This approach involves identifying early-stage opportunities that may be easily overlooked but have the potential to create new categories. By focusing on these adjacent possibilities, investors can tap into the dynamic forces driving innovation and the emergence of new themes, verticals, or products. This strategy may require moving away from traditional investment areas and being open to exploring new and uncertain markets.

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