How to select stocks from monopolistic enterprises? Firstly, we need to understand what a monopolistic enterprise is?

Monopolistic enterprises, as the name suggests, are industries that enjoy policy protection from the state, thereby controlling social production, manipulating, and monopolizing the market. There are still some monopolistic industries in China, such as salt, tobacco, power supply, finance, real estate, etc. These industries still have a taste of planned economy, exclusive operation, and ordinary people cannot live without it. Products are your only choice. So, it is also known as the dominant industry.

There are many reasons for the formation of monopolistic enterprises, and the most fundamental reason is to establish and maintain a legal or economic barrier. Thus preventing other enterprises from entering the market, in order to consolidate the monopoly position of the monopolistic enterprise. As the sole supplier in the market, monopolistic enterprises can easily control the quantity and market price of a certain product, thereby continuously obtaining monopoly profits.

Investors searching for future potential stocks from a monopoly perspective have the following techniques:

1、 Natural resource monopoly

Scenic spot tourism shares have the characteristics of non replicability. Therefore, scenic spot tourism shares such as Mount Huangshan Tourism have certain advantages in independent pricing, because scenic spot resources are monopolies. So, following this approach, individual stocks with the same monopolistic nature as scenic spot tourism stocks also have the ability to set their own prices and the opportunity to intervene at current prices. For example, highways are irreplaceable and have natural resource characteristics. If the main capital can have the ability to continuously acquire these monopolistic assets in highway stocks, there will undoubtedly be more investment opportunities, such as Guangdong Expressway, Shenzhen Expressway and other individual stocks. In addition, individual stocks that have the right to develop hydropower resources are undoubtedly monopolistic resources, because hydropower resources are also non replicable, and even if one piece is developed or lost, there are investment opportunities. For example, the development of the Furong River and Beipan River basins owned by Qianyuan Electric Power, and the Guodian Dadu River Basin Development Company, in which Chuantou Energy holds 10% equity and Guodian Electric Power holds 51% equity.

2、 Technological monopoly

Individual stocks with technological monopolies such as Zhongke Sanhuan, Yunnan Baiyao, and Pianzaihuang have strong technological monopolies in a certain product field and core competitiveness, and their performance growth is also guaranteed to be stable. In addition, Kweichow Moutai, Shanxi Fenjiu, etc. also have a certain monopoly nature of combining technology and resources, and such individual stocks have investment opportunities. For example, Kweichow Moutai rose from more than 40 yuan to 100 yuan in 2006. One of the important reasons is that it has a certain monopoly.