Disruption Investor Review (Make Quick 200% Gains or Hype?)

Hi, and thanks for stopping by to check out my review of Disruption Investor.

I discovered this service through a presentation on the Riskhedge website, where Stephen McBride was talking about a “tollbooth stock” that could soar by 200% to 1,000%.

He also refers to it as an “Amazon Killer.”

In any case, the presentation led me towards McBride’s Disruption Investor service for $99, which gives you insight and stock recommendations related to disruptive tech.

In this review, I’ll shed some light on Stephen McBride’s predictions, show you what you need to know about his service, and share my opinion on whether or not I think it’s worth it.

What’s Stephen McBride’s Tollbooth Stock?

My very first encounter with Disruption Investor was through a presentation titled “The Amazon Killer” which talked about a “new type of internet tollbooth stock” that could rip 200%:

Stephen McBride's The Amazon Killer presentation where he talks about a tollbooth stock.
Source: m.riskhedge.com/amazon-killer-055b

My first guess was Shopify, because that’s one of Amazon’s largest indirect competitors. But according to the Riskhedge website, it’s not Walmart, Shopify, or FedEx.

What could it be?

Well, Stephen kicks off the presentation by stating that a Supreme Court ruling “practically guarantees this little tollbooth stock will climb 200%… 300%… 400%… or a lot more.”

And that it has to do with a 6.5% “toll” being implemented by the U.S. government on all American companies that sell anything online.

He goes on to talk about the rise of online shopping, and how it will continue to grow despite what’s happening in the economy and financial markets.

I tend to agree with that, and so do the stats.

Anyway, Stephen continues by stating that one of the reasons behind Amazon’s success over the years has to do with “an obscure tax ruling from 1992 called Quill.” Which, according to Stephen, forbade governments from taxing online transactions in most cases.

And now, thanks to new Supreme Court ruling, Stephen says online businesses in the United States are having to comply with the individual tax codes of every small town in America. And that his “Amazon Killer” tollbooth stock is able to benefit from this.

Here’s a summary of the remainder of Stephen’s “tollbooth stock” claims:

Using its unique, patent-protected technology, it’s created a new internet tollbooth that all online transactions can pass through.

It went public just days before the Supreme Court ruling.

Renaissance Technologies, known as one of the most secretive and successful hedge funds on earth, loaded up on 2.5 million shares.

BlackRock, the world’s richest money manager, now owns 3.3 million shares.

And Vanguard bought a whopping 5.7 million shares.

What is it?

Well, based on the presentation:

  • We know it’s a small tech company that helps businesses in the U.S. become more tax compliant in each state.
  • We know it uses patented technology.
  • We know it went public right before this Supreme Court ruling, which was decided on Jun 21, 2018.
  • And we have some details about how many shares several large money management firms have bought.

After doing some digging, I think it might be Avalara (AVLR).

I say this because it fits the description well… it describes itself as the leading provider of cloud-based tax compliance solutions, holds a patent to do with sales tax, went public on June 15, 2018, and it looks like all three of the hedge funds he mentioned have invested in it.

Of course, this is just my best guess. To see for sure what stock Stephen is pitching, and to get his full analysis and research on the company, you need to read his report. The one titled “Amazon’s Kryptonite: Collect up to 1,000% Profits on the Internet’s New Tollbooth.”

And to get your hands on that report, you need to join his service, Disruption Investor. So let’s take a look at what it’s all about and whether or not it’s worth it.

Overview of Disruption Investor

Disruption Investor is a monthly stock advisory service headed up by Stephen McBride of Riskhedge. The main focus of the service is on recommending “disruptive” companies that could provide outsized gains for subscribers.

In fact, according to Stephen, that’s the only type of opportunity he aims to recommend, “disruptive stocks that will change the world.” Like Netflix, Shopify, Priceline and Amazon.

He points out that the types of companies he recommends aren’t startups though, they are established companies with a market cap of $5 billion or more.

He says that, even though the primary goal is seeing gains of between 200% to 1,000%, the goal is also to do so “safely.” So he doesn’t focus on small cap stocks (market cap of up to $2 billion) as many gurus do, and that does make the service somewhat unique.

Have Stephen’s Disruption Investor stock picks paid off?

Stephen has recommended many stocks over the years as part of the service. And even though not all of them have worked out, some have.

For example, he recommended the following companies in 2018:

  • Xilinx, Inc. (XLNX) – 52% gain in four months
  • Alteryx, Inc. (AYX) – 198.4% gain in just over a year
  • And The Trade Desk Inc. (TTD) – 252% in a year and a half

What about his current recommendations?

To access the current Disruption Investor stock picks, you need to join the service and take a look at the model portfolio inside the members area. Stephen releases a new stock pick each month in the newsletter, but the model portfolio is where you get the full list of recommendations.

You don’t just get a bunch of stock picks with Disruption Investor though.

You also get access to regular updates and “buy alerts” to keep you informed, and some bonus reports that detail some of the disruptive stocks Stephen is currently bullish on.

I’ll walk you through exactly what you get in a moment. But first, let’s take a look at who Stephen McBride is, and what he’s known for, to try to figure out if he’s worth paying attention to.

Who Is Stephen McBride?

Stephen McBride
Stephen McBride

Stephen McBride is the man behind the “Amazon Killer” presentation and the Disruption Investor service. He’s also the Chief Analyst for Riskhedge, a popular financial publishing company that provides a range of investment advisory services focussed on disruptive trends.

Prior to working with Riskhedge, he says he worked at a billion-dollar financial institution in New Zealand, but decided it wasn’t for him, and quit to become an independent analyst.

Unlike most “investing gurus” I come across in this space, there’s not a whole lot of information out there about Stephen. At least, not on the Riskhedge website.

However, he has appeared on Yahoo Finance, and he does mention that his work is regularly featured in Forbes. Which is true, he writes for Forbes on an almost weekly basis, covering a range of topics related to the financial markets.

According to his Forbes bio:

I’m a professional investor and the chief analyst at RiskHedge, a disruption research firm. My team and I hunt for under-the-radar “disruptive” companies that are changing the world and making investors rich in the process.

It looks as though he also contributes to a financial publishing company called Newsmax Media which was founded in 1998.

Other than that, the Riskhedge website says he was Born in Dublin, Ireland and that he likes to travel to and from Ireland and the United States.

Others he works with include Riskhedge’s Chris Wood, who describes himself as a 20 year market veteran. And Olivier Garret who, among other things, was the CEO and Partner of Casey Research, one of the most well-known financial publishers in the natural resources space.

What Do You Get If You Join?

The main benefits you get as a subscriber of the Disruption Investor service are the monthly newsletters, model portfolio, alerts and bonus research reports.

Together, these resources are aimed at helping virtually any type of investor make money with what Stephen describes as “disrupters” that could soar by 200% or more.

Here’s an overview of what you get if you join:

  • Monthly issues of Disruption Investor that detail a new “disruptive” stock recommendation, which are typically innovative companies with a market cap of $5 billion or more that Stephen and the Riskhedge team believe have huge growth potential.
  • Access to the model portfolio which shows you exactly which stocks Stephen is currently recommending, including the details of when he recommended it.
  • Regular updates and “alerts” to help keep you informed about what’s happening with the model portfolio, so that you can decide when it’s best to buy and sell.
  • Access to The Disruption Investor Owner’s Manual which is a guide that outlines Stephen’s five-step criteria for evaluating potentially disruptive companies.

On top of this, you also get access to a bunch of bonus reports. Exactly which reports you get depend on which page you join through and which membership option you choose.

But these are the ones you get with the “Amazon Killer” pitch:

  • Amazon’s Kryptonite: Collect up to 1,000% Profits on the Internet’s New Tollbooth
  • Three Disruptive Stocks for the Great Millennial Melt Up
  • Dr. “App”: 1,000% Gains on the Healthtech Revolution Coming to Your Smartphone

How Much Does It Cost?

The cost to join Disruption Investor is $99 for 12 months.

However, if you access the order page through the Amazon Killer promotion, you are offered a two year subscription for $179. And if you go this route, they give you two more bonus reports. One is called “The End of the Bank” and the other is “Dump These Disruption Losers Now!”

There’s also a 30 day refund policy in place. So if you join and aren’t happy with the service during your first 30 days, they say they’ll refund you no questions asked.

Bottom Line

Disruption Investor is a monthly stock advisory service that’s focussed on recommending “disruptive” companies that could provide outsized gains for subscribers.

It’s headed up by Stephen McBride of Riskhedge, who says that each of his picks could help you make 2X, 5X, 10X your money or more.

I personally think it could be worth checking out if you’re interested in betting on lesser-known companies with high upside potential.

Of course, there are no guarantees.

Even though Stephen McBride is a real investing professional, and the Disruption Investor is legitimate, doesn’t guarantee you will make money. Let alone that you’ll 10X your money.

But there is potential, and I like how the service recommends more established companies instead of super risky small caps.

By no means does that eliminate the risk, but it does seem like they strive to recommend companies with good upside potential, that also have solid fundamentals.

That’s my take anyway. What you decide to do is up to you, I’m not affiliated with Riskhedge in any way, I just wanted to share my thoughts on it, and I hope you found it helpful.

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