There are a few issues with his theory.
1. Most companies that are fulfulling a trend are already large companies therefore the new line has moderate impact on the company because it's part of the bigger picture.
2. Most companies that have locked into a niche market had the growth even before the new product is released to the market.
3 Niche markets that are not managed will often fail.
Amstrad computers was a good example, they were world leaders in PC manufacture. Commodore 64 computer another example.
1986
Amstrad captures 25% of the European Personal Computer market.
4 The period he made his $2 million 2007-2010, the market was over heated. It was also supported by Government stimulus and the only growth factor was inflation.
You could sell thin air in the market and some who did are in jail.
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