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.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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