Q: Is this a relatively sound strategy:
"Buy all stocks in a single sector (100% market share) to mitigate risk of competition between the players."
For example, in a stable and growing market like Canadian telecom, I'll just buy Telus, Rogers AND BCE which makes up for 90% (?) of the telecom market. Sounds like a no-brainer. Of course there is risk from outside competition but it sounds like since the Verizon entry into Canada didn't materialize, there isn't much competition anyway.
There is over-concentration risks etc and also regulatory risk, however.
"Buy all stocks in a single sector (100% market share) to mitigate risk of competition between the players."
For example, in a stable and growing market like Canadian telecom, I'll just buy Telus, Rogers AND BCE which makes up for 90% (?) of the telecom market. Sounds like a no-brainer. Of course there is risk from outside competition but it sounds like since the Verizon entry into Canada didn't materialize, there isn't much competition anyway.
There is over-concentration risks etc and also regulatory risk, however.