20 years in the past, I discovered an essential lesson: if you happen to can’t beat them, be part of them. And if you happen to can’t discover a job with the monopolies, then you definately would possibly as effectively spend money on them!
Take what occurred on September 1, 2025. I acquired an e 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 little thing must be free, like my weekly publication 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 hundreds of thousands of subscribers. I am not going to unsubscribe resulting from 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 if you’ve constructed a monopoly-like ecosystem.
The one logical factor I might consider after that e 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—similar to patents, unique sources, authorities regulation, or sheer economies of scale—the monopolist can keep outsized earnings and pricing flexibility over time.
Money Hoards And Giant 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 have to innovate in the best way we expect, by launching world-changing devices yearly. Simply repositioning the digicam lens 1 millimeter is nice sufficient!
The true “innovation” is Apple’s capacity 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 alternative 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 depart.
That’s why Apple is barely going to proceed dominating. As an investor, betting in opposition to Apple is betting in opposition to 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 some other search engine compete when Google buys the pole place on the world’s most precious and well-liked 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 helpful search visitors.
In September 2025, Google was spared the worst potential judgment in its landmark antitrust case. Decide Amit Mehta dominated that whereas Google can not enter into unique agreements with firms, it’s nonetheless allowed to pay companions like Apple to distribute its providers. Translation: Google can hold sending tens of billions to Apple, and Apple can hold cashing the checks.
That may be a win-win for each firms—and their shareholders. It would even be a win for Decide Mehta and his prolonged household, wink wink. If that’s the case, Decide Mehta must observe Stealth Wealth as an alternative of abruptly 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 stage.
The one firm that might theoretically compete is Microsoft, with Bing, which no person cares about. If Microsoft ever decides to go bananas and bid in opposition to 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 person 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 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 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 as we speak, assuming the S&P 500 closes up 10% in 2025. They’ve turn out to be a semi-human monopoly—capable of 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 house in 2006, acquired foreclosed on in 2010, and declared chapter. As an alternative of compounding hundreds of thousands, they ended up with damaging 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 in the future promote to Apple or Google, not compete with it.
Identical to firms, people who have already got the sources are inclined to hold pulling additional forward. The snowball impact is actual.
Human Monopolies and Duopolies
For this reason I consider 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 not often 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 non-public for now, their oligopoly construction is already forming, together with Llama and Gemini.
In shopper merchandise, Coca-Cola and Pepsi dominate world tender drinks in a basic duopoly. Should you consider the world will hold 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 hold spending past their means and paying double-digit rates of interest on revolving credit score, proudly owning these firms is a rational alternative.
The sample is evident: these entrenched gamers are allowed to develop larger and extra worthwhile whereas regulators look the opposite approach. Politicians usually personal shares within the very monopolies they’re supposed to manage.
So why shouldn’t you?
Adapt or Perish
In fact, disruption is all the time potential. 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 spend money on each OpenAI and Anthropic as a hedge.
However disruption doesn’t get rid of the monopoly dynamic—it simply shifts it. Immediately’s upstart is tomorrow’s entrenched winner. For now, Apple, Google, Microsoft, Coca-Cola, Pepsi, Visa, and Mastercard are nonetheless firmly in management.
Firms adapt. Traders should as effectively. 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 handiest wealth-building technique. However if you happen to’re studying Monetary Samurai, you probably care about cash greater than most. In consequence, you’re prepared to suppose strategically about learn how to tilt the chances 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 would like. Sure, fear about inequality. However on the finish of the day, if it’s authorized and worthwhile, the rational investor joins the profitable aspect. As a result of if you happen to can’t beat them, you would possibly as effectively 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 perhaps backing startups that might in the future 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 may afford to lose. All investments carry danger, and your choices are yours alone.
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