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What's the strongest competitive advantage? Having little or no competition. These companies enjoy monopolies or near-monopolies in their respective markets.

Monopolies and near monopolies

Companies with monopoly or near-monopoly power typically generate steady cash flow. They can also provide downside protection to investors during market declines.

The stocks of monopolies and near monopolies don't always deliver strong growth. Also, some companies with minimal competition today could face rivals in the future that disrupt their business model.