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.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- Why a 60/40 Balanced Portfolio Is So Defensive - August 10, 2022
- S&P 500 versus the MSCI All Country World Index and the Dimensional All Country World Research Index. - August 7, 2022
- Should You Apply for the 3.04% 50-Year Green SGS Bond? - August 5, 2022