“Competition is for losers,” said PayPal co-founder and billionaire venture capitalist, Peter Thiel. The best businesses are monopolies because they have no competition. They own the markets and they decide on the prices. Buffett echoed the same sentiments, “if you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by a tenth of a cent, then you’ve got a terrible business.” Profits are often competed away when there are too many competitors. And any highly profitable businesses would attract competitors. Hence, Buffett said that businesses must have “moats” to prevent competitors from taking way their market share so as to maintain their monopolies. If you can find these monopolies, they would be able to capture outsized profits in the long run – only monopolies are meant for long term investments. We have also noticed that modern monopolies...