When we look for investments we look for businesses that are monopolistic. This is because they are able to earn more and stops competitors from competing. As a shareholder, it means the company is able to grow cashflow with ease.
Monopolistic companies either due to
- business economics
- regulation
Is desired but can change with time.
Here is a good illustration on some of our past anti-trust cases and one potential future one: Google.
Personally, I think google have an advantage. But really technology is a space that even if you are the biggest, your economic moat or monopolistic advantage can shrink just as easily. I don’t think they are a monopoly.
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