Types of Consumer Monopolies

Previously I mentioned the type of businesses the world’s leading stock investor, Warren Buffett, likes to buy, what he considers to be consumer monopolies. These are companies that have a great position in the market and great economics working in their favor.

According to Buffettology that are typically 4 types of consumer monopolies:

1. Businesses that create products that are used up quickly or worn out quickly. They have brand name appeal and merchants have to stock them to stay in business
2. Communications businesses that provide repeating services to manufacturers who need them to advertise their products to the public
3. Businesses that provide repetitive services that people and businesses need continually and consistently
4. Retails stores that have acquired monopoly positions selling items like furniture or jewelry.

You can find many of these types of products in your local corner store like 7-Eleven. They always stock what people want and need the most.