It is almost always unwise to invest in an industry which is entering Stage III of the industry life cycle.

Question

Quizplus · Accepted Answer

Stage III, or the maturity stage, of the industry life cycle can still offer investment opportunities, especially in well-established companies that generate consistent cash flows, pay dividends, and have competitive advantages. The wisdom of investing depends on the investor's goals, risk tolerance, and the specific characteristics of the companies within the industry.

It Is Almost Always Unwise to Invest in an Industry