Forget Big Tech monopolies — the better stock-market investment is in oligopolies

Jeff Reeves
Forget Big Tech monopolies — the better stock-market investment is in oligopolies

Consider dot-com darling Cisco Systems (CSCO) that boasts some $30 billion in cash and investments lying around but has a share price that chronically underperformed the S&P 500 index (SPX) for several years. If you really want investments that avoid competition and pay off, it’s worth looking past the rather fashionable monopolies in Big Tech and going old school. Unlike a true monopoly run by a single dominant players, oligopolies are characterized by a small group of entrenched peers who at best compete only theoretically and at worst collude to run a small corner of the economy however they see fit.