Buy The Best Ahi Tuna Taco in Town...

It makes a lot of sense to focus on this: Monopolies that are good at what they do.

Dear Fellow Expat:

My dog got into the trash. So, it’s been an interesting 72 hours for her stomach.

On the way back from the vet, I saw a restaurant sign that caught my attention.

The sign said: “The Best Ahi Tuna Taco in Town.”

Now… that’s something to brag about.

First off… the town isn’t that big (Cockeysville, Maryland).

Second… combining Ahi Tuna and a Taco? That’s wild.

But as I drove home, I realized something…

It’s best to stick to what you’re good at.

Let’s find a stock that owns their market… and is great at what they do.

The Best Payment Processor in Town

For decades, people have said that Warren Buffett is the greatest investor on earth.

They associate him with deep value and quality stocks.

But there’s something too many people overlook.

He buys monopolies and duopolies.

He doesn’t just buy the best company specializing in town.

He buys the only game(s) in town.

Buffett owns huge stakes in the three largest payment processors in the world: American Express (AMEX), Visa (V), and Mastercard (MA). Combined, they control more than 90% of their industry.

He owns a big stake in Davita (DVA), which owns 35% of the kidney dialysis market.

The chatter around Warren Buffett today is that he has a cash pile of $300 billion.

But people aren’t talking about what he isn’t selling.

He’s not selling Sirius XM (SIRI). He’s adding to the position of the legal monopoly owned by the licensed satellite radio operator.

This all comes down to something we’ve discussed countless times.

You want to own great companies with a solid economic moat.

An economic moat is a competitive advantage that protects a company’s market share and profitability against competitors.

This is a Buffett term… the idea of a medieval-style moat around a company's business. The more advantages they have, the harder it is for rivals to take away their market share or replicate their success.

Think about Apple. It has an incredible network effect, massive cost advantages, incredibly valuable intangible assets (brands and trademarks), huge switching costs if you want to leave their ecosystem and move to PCs or Samsung, and massive efficiency scales.

These advantages make a business successful, and there’s clearly a reason why Buffett has 20% of his portfolio… in Apple.

So… yes, own some Apple.

That sounds like the most obvious thing in the world… but it’s true this Friday.

Now, if you don’t mind… I need to look on my iPhone 16 for a good sushi restaurant.

Stay positive,

Garrett Baldwin

Secretary of Fish