The Investment Question
So, where does this leave us, the investors? These companies still represent the essential plumbing of the global economy. They own the pipes, and transactions will always need to flow through them in some form. This gives them a defensive quality. They can still generate steady, reliable fees when the rest of the market is in a tailspin. Yet, the game has changed fundamentally. Their once unassailable pricing power is under threat, and their market share is no longer a given. Investing in them is no longer a simple bet on a protected monopoly. It’s now a bet on their ability to adapt. Can these lumbering giants learn to dance with nimbler, hungrier competitors? Some might successfully modernise, expanding into new markets and leveraging technology to their advantage. Others, I suspect, could become value traps, slowly bleeding relevance as their old moats dry up. The tollbooth business is still a good one, but only if you’re on the busiest road.