Make investments In Monopolies To Revenue And Win: Resistance Is Futile

20 years in the past, I realized an vital lesson: in the event you can’t beat them, be a part of them. And in the event you can’t discover a job with the monopolies, you then would possibly as effectively put money into them!

Take what occurred on September 1, 2025. I bought an electronic mail from Apple saying my Apple TV+ month-to-month subscription was going up from $9.99 to $12.99. My first response was annoyance. Who needs to pay an additional $3 a month for a similar exhibits? Every part must be free, like my weekly e-newsletter serving to readers obtain monetary freedom sooner!

However as a shareholder, I used to be pumped. A 30% worth hike is huge for profitability given Apple’s tens of millions of subscribers. I am not going to unsubscribe resulting from an additional $3 a month. Then there’s the worth hikes of its newest laptops and telephones. That is the kind of pricing energy you solely get if you’ve constructed a monopoly-like ecosystem.

The one logical factor I may consider after that electronic mail? Purchase extra Apple inventory.

For reference, a monopoly is a market construction the place a single firm or entity dominates the availability of a selected services or products, giving IT important energy to set costs, management distribution, and restrict competitors. As a result of limitations to entry are excessive—similar to patents, unique sources, authorities regulation, or sheer economies of scale—the monopolist can preserve outsized earnings and pricing flexibility over time.

Money Hoards And Massive Ecosystems

Historically, Apple’s inventory sells off after its annual occasion the place IT unveils new merchandise. The hype by no means fairly matches Wall Avenue’s lofty expectations, and 2025’s showcase was no completely different. However Apple doesn’t must innovate in the way in which we predict, by launching world-changing devices yearly. Simply repositioning the digital camera lens 1 millimeter is sweet sufficient!

The true “innovation” is Apple’s means to lock in clients and cost a toll. The App Retailer’s 30% fee is the proper instance. If you happen to’re a developer and also you need your app to succeed, you don’t have any selection however to be inside Apple’s ecosystem. And Apple is aware of this. The iPhone, Mac, iPad, AirPods, Watch—all of those {hardware} merchandise feed into one sticky universe of recurring income. When you’re in, you don’t go away.

That’s why Apple is simply going to proceed dominating. As an investor, betting towards Apple is betting towards super-normal earnings.

Google’s Monopoly Appears to be like Good Too

Then there’s Google, one other monopoly-like juggernaut. Google pays Apple $20+ billion a yr simply to be the default search engine in Safari. Think about that. How can every other search engine compete when Google buys the pole place on the world’s most dear and fashionable gadgets?

Google nonetheless instructions roughly 90% of the worldwide search market, and that dominance stays unshaken regardless of the rise of AI LLMs. To my dismay, Google now lifts writer content material and shows IT in its AI Overviews, making IT even more durable for publishers to seize worthwhile search site visitors.

In September 2025, Google was spared the worst doable judgment in its landmark antitrust case. Decide Amit Mehta dominated that whereas Google can not enter into unique agreements with firms, IT continues to be allowed to pay companions like Apple to distribute its providers. Translation: Google can preserve sending tens of billions to Apple, and Apple can preserve cashing the checks.

That may be a win-win for each firms—and their shareholders. IT would possibly even be a win for Decide Mehta and his prolonged household, wink wink. In that case, Decide Mehta must apply Stealth Wealth as an alternative of immediately driving round in a Lambo and throwing events in a brand new mansion.

How Many Corporations Can Compete at This Degree?

Solely a tiny handful of companies on the earth have the monetary firepower to play at this stage.

The one firm that would theoretically compete is Microsoft, with Bing, which no one cares about. If Microsoft ever decides to go bananas and bid towards Google, we’d see Apple’s annual payout rise into the $30–$40 billion vary. That’s greater than the annual GDP of some small international locations.

From an investor’s standpoint, you root for these bidding wars. So long as Apple stays the gatekeeper of the world’s most coveted person base, IT’s going to receives a commission.

And as historical past has proven, regulators and courts hardly ever break aside such entrenched dominance. When you’ve sufficient scale, cash, and affect, you may bend politics and coverage in your favor.

Strategically, Google ought to spend extra on politicians, as an alternative of the $20 – $30 million a yr on lobbying, to guard its monopoly and acquire even additional floor.

The Winners Hold On Successful

This dynamic isn’t restricted to companies. IT’s the identical in private Finance.

Take into consideration the rich particular person in 2010 who had $10 million in investable property. If that particular person merely plowed IT all into the S&P 500 and reinvested dividends, they’d have round $57 million at the moment, assuming the S&P 500 closes up 10% in 2025. They’ve grow to be a semi-human monopoly—in a position to purchase affect, present multi-generational wealth, and safe benefits most individuals can solely dream of.

Now distinction that with somebody who purchased an excessive amount of residence in 2006, bought foreclosed on in 2010, and declared chapter. As a substitute of compounding tens of millions, they ended up with damaging web price and a credit standing in tatters for seven years. They’re just like the small competitor attempting to claw market share from Apple or Google. The hole solely widens with time. The principle technique is to at some point promote to Apple or Google, not compete with IT.

Similar to firms, people who have already got the sources are inclined to preserve pulling additional forward. The snowball impact is actual.

Human Monopolies and Duopolies

For this reason I imagine buyers ought to focus extra of their consideration on monopoly-like and oligopoly-like firms. If the federal government isn’t going to cease them—and historical past suggests IT hardly ever does—you would possibly as effectively profit.

OpenAI and Anthropic, for instance, are the 2 rising giants in AI giant language fashions. Whereas each are personal for now, their oligopoly construction is already forming, together with Llama and Gemini.

In client merchandise, Coca-Cola and Pepsi dominate international mushy drinks in a basic duopoly. If you happen to imagine the world will preserve guzzling sugary drinks regardless of the Health dangers, these shares make sense.

In funds, Visa and Mastercard type one other entrenched oligopoly. If you happen to assume customers will preserve spending past their means and paying double-digit rates of interest on revolving credit score, proudly owning these firms is a rational selection.

The sample is obvious: these entrenched gamers are allowed to develop greater and extra worthwhile whereas regulators look the opposite approach. Politicians typically personal shares within the very monopolies they’re supposed to control.

So why shouldn’t you?

Adapt or Perish

After all, disruption is at all times doable. OpenAI and Anthropic have already taken bites out of Google’s search enterprise as extra individuals depend on AI-generated solutions. That is another excuse why I’ve determined to put money into each OpenAI and Anthropic as a hedge.

However disruption doesn’t remove the monopoly dynamic—IT simply shifts IT. Right now’s upstart is tomorrow’s entrenched winner. For now, Apple, Google, Microsoft, Coca-Cola, Pepsi, Visa, and Mastercard are nonetheless firmly in management.

Corporations adapt. Buyers should as effectively. The choice is irrelevance.

My Investing Philosophy Going Ahead

For the typical particular person, investing in a low-cost S&P 500 ETF stays the only and only wealth-building technique. However in the event you’re studying Monetary Samurai, you doubtless care about cash greater than most. Because of this, you’re prepared to assume strategically about tips on how to tilt the percentages in your favor.

That’s why I like constructing concentrated publicity to pick out monopolies and oligopolies inside your portfolio. These are the businesses that can doubtless generate probably the most constant earnings, wield probably the most pricing energy, and ship the strongest returns over time. When these firms inevitably right, I’ll purchase the dip.

Sure, complain about injustice if you’d like. Sure, fear about inequality. However on the finish of the day, if IT’s authorized and worthwhile, the rational investor joins the successful facet. As a result of in the event you can’t beat them, you would possibly as effectively put money into them.

That’s not cynicism. That’s survival.

Readers, are you investing in monopolies and oligopolies as a part of your technique? Or perhaps backing startups that would at some point get acquired by them? I’d love to listen to your perspective—why do you assume the federal government and courts aren’t extra proactive in breaking apart these giants for the sake of customers?

Disclaimer: This isn’t funding recommendation. I’m merely sharing what I’m doing with my very own cash. Please do your individual analysis, make investments solely in what you perceive, and by no means danger greater than you may afford to lose. All investments carry danger, and your choices are yours alone.

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