Is the Company Involved in a Dirty Type of Business?

If the company is involved in a “dirty” cleanup kind of business, there will likely not be any new competitors entering into the market. This lack-of-competitor advantage allows for an increase of market share and in turn an increase in revenue and earnings over time. For example, Waste Management (WM) grew from a small operation to today’s market cap of $16 billion. Another example is Service Corporation (SCI), which operates in the funeral business. There are multiple businesses like that in the market. If you hold shares in these companies for a long time, you can make a lot of money and build your fortune over time.