The Ultimate Toll Booth

In the high-stakes world of business dominance, timing isn't just important—it's everything.

Today's most formidable business models are built on network effects—where each additional user increases the service's value for everyone. Every investor searches for these nascent network opportunities, but there's a catch: by the time investors spot one, competitors have too. These rivals quickly begin copying the original company's model, leading to fierce competition as everyone races to reach critical mass first.

Consider the ride-sharing wars.

Uber launched in 2009 with a brilliant two-sided marketplace connecting drivers and passengers.

Their early success in San Francisco quickly proved the model's viability, but before they could cement global dominance, competitors emerged everywhere

Lyft established itself as a strong domestic rival, forcing Uber to burn billions in promotional discounts and driver incentives. Internationally, the story was even more challenging—Didi Chuxing outmaneuvered them in China, eventually forcing Uber to sell its operations there. Grab dominated Southeast Asia, Ola captured India, and Bolt (formerly Taxify) gained significant European market share.

What could have been a single dominant global platform instead became a fragmented landscape of regional players, each defending their territory and preventing any one company from fully capturing the network effect's potential full value.

The truly exceptional companies—the ones that deliver astronomical returns to shareholders—secured their network advantage before anyone recognized what was happening. They quietly built infrastructure, connecting points in an ecosystem when no one was paying attention. By the time competitors noticed, the fortress was already impenetrable.

Our latest investment recommendation embodies this principle perfectly. Born from a single banking institution's experiment in the 1950s, this payment processing giant methodically expanded by signing banks, merchants, and consumers when digital payments were barely on the radar. Today, it processes billions of transactions across more than 200 countries, with profit margins that would make most Fortune 500 CEOs weep with envy.

Its network is so entrenched that even governments and tech giants have failed to displace it. With operating margins above 65% and a return on invested capital exceeding 40%, this company isn't just successful—it's in a league of its own.