Recently, I read that NSDL is planning for an IPO which will ultimately result in the end of CDSL’s monopoly as a listed compnay.
My question is how do people find out monopoly stocks in for long term investment? How can I find such stocks?
How is being a listed company a monopoly?
Because there is no other company that offers same product or service. I guess, we can call such a company as a monopoly…
Market/Sector monopoly has no connection to being listed. NSDL and CDSL is Duopoly
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I think, you’re missing the main point here. The main question was how to find monopoly stocks to invest in…
Besides that I never said there is a connection between being listed and being a monopoly. The expected interpretation of the example was, uptill now, any ordinary investor could invest in CDSL (because it is a listed company) and couldn’t in NSDL (since it’s not a listed company as of now). From that perspective, CDSL is the monopoly at the stock markets (and not in the sector/industry).
Now, since NSDL is also planning for an IPO, this said monopoly won’t be there because there will a competitor at the markets.
Monopoly stocks does not mean that it will always give good returns. IRCTC is an example. Anyways, with the increase in business, a sector remaining monopoly for long is quite unlikely, as everyone will be trying to take their share of the pie and monopolistic businesses aren’t also consumer friendly.
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Thank you for the insights man. It’s definitely informative however, I asked just out of curiosity about finding such stocks.