Companies with Large MarketShare that Do Not Change Over Time

[BG2008]

I wonder if a google spread sheet would be better for tracking this list

[CorpRaider]

MCO, SPGI

[LC]

There are cases of large market shares that are stable where none of the participants make too much money. It's interesting to study the dynamics. I was reading in Peter Thiel's book that innovators often start in a small niche market and dominate it.

 

What are some of the examples of large marketshare and no change over time where participants generate low return on capital?? I would love to know more of them and reverse engineer the rationale.

 

I would say the cement/aggregate companies. Usually there is only enough room for 1 in any area, but they don't exactly earn a great ROC. Especially since it costs so much to build/maintain one.

[BG2008]

There are cases of large market shares that are stable where none of the participants make too much money. It's interesting to study the dynamics. I was reading in Peter Thiel's book that innovators often start in a small niche market and dominate it.

 

What are some of the examples of large marketshare and no change over time where participants generate low return on capital?? I would love to know more of them and reverse engineer the rationale.

 

I would say the cement/aggregate companies. Usually there is only enough room for 1 in any area, but they don't exactly earn a great ROC. Especially since it costs so much to build/maintain one.

 

I think Aggregate is a much better business than cement.  It's a $/ton/mile issue.  Cement despite being heavy, it is still much more valuable per ton than aggregate.  Hence aggregate has pricing power within say a 30-50 mile radius, where cement has pricing power within a 300 mile radius. Price and trucking cost dictate these radius.  For aggregate, I think the ROC maybe better than cement in the second life aspect.  The cement plant likely encompass a small footprint.  There's more environmental remediation when the supply is exhausted.  With aggregates, there's more second life value as you can turn the large parcels of land into master planned communities etc.  Hence, with aggregate, the return on DCF may look unimpressive.  But if you apply real estate lens to it, i.e. , you're going to wind up with a thousands of acres of land when the aggregate mine is exhausted, the return may surprise you.  To a certain extent, it's like timber which I'm looking into.  The harvest revenue and cashflow is meager, but your forest keeps getting bigger.  The biomass keeps increasing overtime along with unit inflation.  I suspect that multi-generation ROC for aggregates will be much better than people think.       

[Packer16]

An interesting twist is if you can find these asset in growing property constrained markets.  This can lead to nice cash flows & a large hidden asset when the resource is exhausted.

 

Packer

[Guest Schwab711]

There are cases of large market shares that are stable where none of the participants make too much money. It's interesting to study the dynamics. I was reading in Peter Thiel's book that innovators often start in a small niche market and dominate it.

 

What are some of the examples of large marketshare and no change over time where participants generate low return on capital?? I would love to know more of them and reverse engineer the rationale.

 

I was reading something earlier today that Sony has one of the most recognized brands internationally. It was actually pretty close with Apple at the start of the decade. In stores, they usually charge a 5% premium. Looking at their performance over the last couple decades, they've generally lost money over any multi-year period.

 

I can't think of any others but the brand recognition part was interesting.

[BG2008]

There are cases of large market shares that are stable where none of the participants make too much money. It's interesting to study the dynamics. I was reading in Peter Thiel's book that innovators often start in a small niche market and dominate it.

 

What are some of the examples of large marketshare and no change over time where participants generate low return on capital?? I would love to know more of them and reverse engineer the rationale.

 

I was reading something earlier today that Sony has one of the most recognized brands internationally. It was actually pretty close with Apple at the start of the decade. In stores, they usually charge a 5% premium. Looking at their performance over the last couple decades, they've generally lost money over any multi-year period.

 

I can't think of any others but the brand recognition not was interesting.

 

Any idea if Sony lost or added market share over time??

[Ballinvarosig Investors]

The clothing fastenings market has been dominated by the same three players for decades now. Coats Group is the only one that is publicly trade-able and has seen a nice little run-up in the last few weeks.

 

• YKK Group (Japanese)
  
• Coats (British)
  
• Prym (German)
  

 

 

[buylowersellhigh]

Luxottica  - eyeglasses