Twenty years in the past, I realized an essential lesson: for those who can’t beat them, be part of them. And for those who can’t discover a job with the monopolies, you then would possibly as effectively spend money on them!
Take what occurred on September 1, 2025. I bought 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 part needs to be free, like my weekly 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 thousands and thousands of subscribers. Then there’s the worth hikes of its newest laptops. 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 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 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—reminiscent of patents, unique assets, authorities regulation, or sheer economies of scale—the monopolist can keep outsized income 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 completely different. However I’ve come to understand one thing: Apple doesn’t have to innovate in the way in which we predict—by launching world-changing devices yearly. Simply transferring the digicam lens 1 millimeter is nice sufficient.
The true “innovation” is Apple’s capability to lock in prospects and cost a toll. The App Retailer’s 30% fee is the proper instance. In the event 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 depart.
That’s why Apple is barely going to proceed dominating. As an investor, betting towards Apple is betting towards super-normal income.
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 beneficial and fashionable units?
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 tougher for publishers to seize precious search visitors.
In September 2025, Google was spared the worst doable judgment in its landmark antitrust case. Choose 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 preserve sending tens of billions to Apple, and Apple can preserve cashing the checks.
That could be a win-win for each firms—and their shareholders. It would even be a win for Choose Mehta and his household.
How Many Corporations Can Compete at This Degree?
Solely a tiny handful of corporations on this planet have the monetary firepower to play at this degree.
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 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 hardly ever break aside such entrenched dominance. When you will have sufficient scale, cash, and affect, you’ll be able to bend politics and coverage in your favor.
Strategically, Google ought to spend extra on politicians, as an alternative of the $20 – $30 million a 12 months on lobbying, to guard its monopoly and achieve even additional floor.
The Winners Preserve 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 belongings. If that individual merely plowed all of it into the S&P 500 and reinvested dividends, they’d have round $57 million in the present day, assuming the S&P 500 closes up 10% in 2025. They’ve turn into 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, bought foreclosed on in 2010, and declared chapter. As a substitute of compounding thousands and thousands, they ended up with detrimental 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 primary technique is to at some point promote to Apple or Google, not compete with it.
Similar 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
Because of this 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 hardly ever does—you would possibly as effectively profit.
OpenAI and Anthropic, for instance, are the 2 rising giants in AI massive language fashions. Whereas each are personal 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. In the event you consider 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. In the event you assume shoppers 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 means. 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 invest in both OpenAI and Anthropic as a hedge.
However disruption doesn’t get rid of 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.
Firms adapt. Traders should as effectively. The choice is irrelevance.
My Investing Philosophy Going Ahead
For the common individual, investing in a low-cost S&P 500 ETF stays the best and handiest wealth-building technique. However for those who’re studying Monetary Samurai, you possible care about cash greater than most. Consequently, you’re prepared to assume strategically about easy methods 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 may possible generate probably the most constant income, wield probably the most pricing energy, and ship the strongest returns over time. When these firms inevitably right, I’ll purchase extra.
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 for those who 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 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 shoppers?
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