Monopolies in the commonly accepted definition of the word are rare these days compared to their presence during the 19th and 20th centuries. First, industries are more complex. Second, the Federal Trade Commission (FTC), formed in 1914, has more teeth, though it has suffered some high-profile losses of late such as with the Microsoft (MSFT)/Activision Blizzard (ATVI) merger. Third, global trade adds more competition.
Still, companies can dominate their niches – and, if they're publicly traded, create a monopoly stock in return. When this happens, investors looking for the best stocks to buy should pay close attention for long-term opportunities. These firms can use their dominance in ways to grow earnings and revenues in ways that lesser players cannot. Witness Apple (AAPL) and its highly profitable services business that other hardware manufacturers cannot replicate.
