Twenty years in the past, I discovered an necessary lesson: when you can’t beat them, be part of them. And when you can’t discover a job with the monopolies, you then would possibly as nicely spend money on them!
Take what occurred on September 1, 2025. I acquired 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? All the things ought 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 because of an additional $3 a month. Then there’s the value hikes of its newest laptops and telephones. That is the kind of pricing energy you solely get whenever you’ve constructed a monopoly-like ecosystem.
The one logical factor I might 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—reminiscent of patents, unique assets, 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 totally different. However Apple doesn’t must innovate in the best way 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 means to lock in prospects and cost a toll. The App Retailer’s 30% fee is the right instance. For those who’re a developer and also you need your app to succeed, you haven’t 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 to be like 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 another search engine compete when Google buys the pole place on the world’s most respected and widespread 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 invaluable search site visitors.
In September 2025, Google was spared the worst potential judgment in its landmark antitrust case. Decide Amit Mehta dominated that whereas Google can’t enter into unique agreements with firms, it’s nonetheless 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’d even be a win for Decide Mehta and his prolonged household, wink wink. In that case, Decide Mehta must observe Stealth Wealth as a substitute of abruptly 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 this planet 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 nations.
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 hardly ever 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 achieve even additional floor.
The Winners Hold On Successful
This dynamic isn’t restricted to firms. 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 individual merely plowed all of it into the S&P 500 and reinvested dividends, they’d have round $57 million right now, 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 dwelling in 2006, acquired foreclosed on in 2010, and declared chapter. As an alternative of compounding tens of millions, they ended up with adverse web price and a credit standing in tatters for seven years. They’re just like the small competitor making an attempt to claw market share from Apple or Google. The hole solely widens with time. The principle technique is to sooner or later promote to Apple or Google, not compete with it.
Identical to firms, people who have already got the assets are inclined to preserve pulling additional forward. The snowball impact is actual.
Human Monopolies and Duopolies
That is why 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 nicely 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 client merchandise, Coca-Cola and Pepsi dominate international delicate drinks in a traditional duopoly. For those who 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. For those who suppose 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 larger and extra worthwhile whereas regulators look the opposite method. Politicians usually personal shares within the very monopolies they’re supposed to control.
So why shouldn’t you?
Adapt or Perish
In fact, disruption is at all times potential. OpenAI and Anthropic have already taken bites out of Google’s search enterprise as extra folks depend on AI-generated solutions. That is another excuse why I’ve determined to spend money on each OpenAI and Anthropic as a hedge.
However disruption doesn’t remove the monopoly dynamic—it simply shifts it. At this time’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 nicely. The choice is irrelevance.
My Investing Philosophy Going Ahead
For the typical individual, investing in a low-cost S&P 500 ETF stays the best and simplest wealth-building technique. However when you’re studying Monetary Samurai, you probably care about cash greater than most. In consequence, you’re keen to suppose strategically about learn how to tilt the percentages in your favor.
That’s why I like constructing concentrated publicity to pick monopolies and oligopolies inside your portfolio. These are the businesses that can probably generate essentially the most constant earnings, wield essentially 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 need. Sure, fear about inequality. However on the finish of the day, if it’s authorized and worthwhile, the rational investor joins the profitable facet. As a result of when you can’t beat them, you would possibly as nicely 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 sooner or later 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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