Google, Microsoft, and Meta continue to dominate super investors’ portfolios, and one reason is their dominance in the consumer market.
According to the latest Dataroma statistics, Alphabet (Google), Microsoft, and Meta (Facebook) are the three most owned stocks among super investors.
Top investors also continued to pump money into these companies. Meta, Microsoft, Amazon, and Alphabet were the top buys over the last six months.
Dataroma tracks Form 13F filings from super investors with the Securities and Exchange Commission (SEC) in the United States, which gives a good summary of their investment activities.
The tech giants have strong balance sheets, generate large amounts of cash, and have dominant positions in their industries.
Their dominance plays a crucial role in these tech giants generating tremendous profits and continuing to expand.
Although they downplay their dominance because of political and regulatory scrutiny, the reality is that they are monopolies.
Google dominates online search and mobile software, Microsoft has the most popular operating system and productivity software, and Facebook dominates social media.
Peter Thiel, the founder of PayPal and Palantir, said one of the reasons for the US tech industry’s success is that the environment is prone to create monopoly-like businesses.
“After you achieve a monopoly in your niche, you can expand your offering to cover other areas where you can dominate,” he said.
It is exactly what Google, Microsoft, and Facebook have done.
They all started by dominating a specific niche and then expanded their businesses, both organically and through acquisitions, to grow their reach.
The result is that these companies now own the most used consumer products on the planet.
Here is a summary of the Top 10 most popular products based on the number of users, and the companies who own these products.
|Number of users