20 years in the past, I discovered an vital lesson: in the event you can’t beat them, be part of them. And in the event you can’t discover a job with the monopolies, you then may as properly spend money on them!
Take what occurred on September 1, 2025. I received 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 desires to pay an additional $3 a month for a similar reveals? Every little thing needs to 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% value hike is very large 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 while 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 provision of a specific services or products, giving it vital energy to set costs, management distribution, and restrict competitors. As a result of limitations to entry are excessive—comparable 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 Road’s lofty expectations, and 2025’s showcase was no totally different. However Apple doesn’t must innovate in the way in which we expect, by launching world-changing devices yearly. Simply repositioning the digital camera lens 1 millimeter is nice sufficient!
The true “innovation” is Apple’s capability to lock in clients and cost a toll. The App Retailer’s 30% fee is the right instance. Should you’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 barely going to proceed dominating. As an investor, betting towards Apple is betting towards super-normal earnings.
Google’s Monopoly Appears Good Too
Then there’s Google, one other monopoly-like juggernaut. Google pays Apple $20+ billion a 12 months 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 precious 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 priceless search visitors.
In September 2025, Google was spared the worst potential judgment in its landmark antitrust case. Choose Amit Mehta dominated that whereas Google can’t enter into unique agreements with corporations, it’s nonetheless allowed to pay companions like Apple to distribute its companies. Translation: Google can preserve sending tens of billions to Apple, and Apple can preserve cashing the checks.
That could be a win-win for each corporations—and their shareholders. It would even be a win for Choose Mehta and his prolonged household, wink wink. In that case, Choose Mehta must follow Stealth Wealth as a substitute of all of the sudden driving round in a Lambo and throwing events in a brand new mansion.
How Many Companies Can Compete at This Degree?
Solely a tiny handful of corporations on the planet have the monetary firepower to play at this degree.
The one firm that would theoretically compete is Microsoft, with Bing, which no person cares about. If Microsoft ever decides to go bananas and bid towards Google, we would 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 consumer base, it’s going to receives a commission.
And as historical past has proven, regulators and courts not often break aside such entrenched dominance. When you’ve got sufficient scale, cash, and affect, you possibly can bend politics and coverage in your favor.
Strategically, Google ought to spend extra on politicians, as a substitute of the $20 – $30 million a 12 months on lobbying, to guard its monopoly and acquire even additional floor.
The Winners Maintain On Profitable
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 all of it into the S&P 500 and reinvested dividends, they’d have round $57 million at present, assuming the S&P 500 closes up 10% in 2025. They’ve turn out 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, received foreclosed on in 2010, and declared chapter. As an alternative of compounding tens of millions, they ended up with destructive 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 primary technique is to someday promote to Apple or Google, not compete with it.
Similar to corporations, people who have already got the sources are likely to preserve pulling additional forward. The snowball impact is actual.
Human Monopolies and Duopolies
That is why I imagine traders ought to focus extra of their consideration on monopoly-like and oligopoly-like corporations. If the federal government isn’t going to cease them—and historical past suggests it not often does—you may as properly profit.
OpenAI and Anthropic, for instance, are the 2 rising giants in AI massive language fashions. Whereas each are non-public for now, their oligopoly construction is already forming, together with Llama and Gemini.
In shopper merchandise, Coca-Cola and Pepsi dominate international gentle drinks in a basic duopoly. Should you imagine the world will preserve guzzling sugary drinks regardless of the well being dangers, these shares make sense.
In funds, Visa and Mastercard kind one other entrenched oligopoly. Should you suppose customers will preserve spending past their means and paying double-digit rates of interest on revolving credit score, proudly owning these corporations is a rational selection.
The sample is obvious: these entrenched gamers are allowed to develop greater and extra worthwhile whereas regulators look the opposite manner. 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 all the time potential. OpenAI and Anthropic have already taken bites out of Google’s search enterprise as extra folks depend on AI-generated solutions. That is one more reason why I’ve determined to spend money on each OpenAI and Anthropic as a hedge.
However disruption doesn’t get rid of the monopoly dynamic—it simply shifts it. In the present day’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. Traders should as properly. The choice is irrelevance.
My Investing Philosophy Going Ahead
For the common particular person, investing in a low-cost S&P 500 ETF stays the best and simplest wealth-building technique. However in the event you’re studying Monetary Samurai, you doubtless care about cash greater than most. In consequence, you’re keen to suppose strategically about the right way 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 may doubtless generate probably the most constant earnings, wield probably the most pricing energy, and ship the strongest returns over time. When these corporations inevitably right, I’ll purchase the dip.
Sure, complain about injustice if you would 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 may as properly spend money on them.
That’s not cynicism. That’s survival.
Readers, are you investing in monopolies and oligopolies as a part of your technique? Or possibly backing startups that would someday get acquired by them? I’d love to listen to your perspective—why do you suppose 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 personal analysis, make investments solely in what you perceive, and by no means danger greater than you possibly can afford to lose. All investments carry danger, and your selections are yours alone.
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