The Growth Conundrum: Should You Invest in Companies That Dominate the World?

The Rule #1 Investor's Dilemma

If you're following the Rule #1 strategy, you're not just buying stocks. You're buying businesses. And that means you’re partnering with companies you believe in. But here's the hard question I’ve been grappling with lately:

Do you want the companies you invest in to grow so big they dominate their industry—or even the world?

As investors, we love growth. But what happens when that growth becomes so powerful it starts reshaping society in ways we might not like?

Let’s dive into what I call the Growth Conundrum—and how to think about it using Rule #1 principles.

Growth Is Good... Right?

Most of us are in this game to grow our wealth, and that means investing in companies that grow. But growth isn't neutral—it comes with consequences. Think about what happens when a company doubles, then doubles again:

• It increases its influence.

• It pushes out competitors.

• It changes the landscape—economically and culturally.

Here’s a quick example:

Walmart's Impact on Small Towns

Walmart might offer convenience and low prices, but it’s also responsible for putting many small businesses under. I’ve seen entire main streets go dark after a big-box retailer moves in. Sure, their stock might bounce back after a dip, but the real question is:

Is this the kind of business I want to support with my money?

Rule #1 Principle—"Meaning" Goes Beyond You

One of the four key principles in Rule #1 Investing is Meaning—the idea that you invest in companies that align with your values. But we often interpret that as “I like this brand” or “I believe in what they do.” That’s a good start.

What I’m encouraging you to ask now is:

• Do I want this company to exist in the world?

• Do I want it to get bigger?

• Am I okay with how it changes the world as it grows?

That’s a deeper level of "Meaning," and it’s something that matters if you want to sleep at night.

The Power—and Problem—of Big

Tech Giants: Innovation vs. Influence

Companies like Amazon, Apple, Google, and Meta have given us incredible tools. But they've also:

• Crushed smaller competitors

• Extracted enormous amounts of user data

• Shaped global culture and behavior

Even Netflix, which I’ve invested in, is dominating streaming through algorithmic engagement. That’s not inherently bad—but is that the kind of influence I want to contribute to?

“They use the power of that profit to destroy competitors.”

And that raises a moral question. If you're buying shares in a company that’s built to dominate, are you part of the problem? Or just playing the game well?

Examples of Companies I Do Want to See Grow

Chipotle Mexican Grill

They’ve scaled by offering high-quality food at a good value. Their growth seems to be making the world a better place—better ingredients, more awareness around food sourcing.

Sprouts Farmers Market

This company is winning by working with local farmers and offering affordable natural food. They’ve exploded in share price recently, and I was happy to see it. Not just because of the gains, but because I like seeing more Sprouts in the world.

"Is the world a better place because these guys have 2,000 stores instead of two?"

That’s a key Rule #1 question.

Questions to Ask Before Buying

Here’s how to apply this thinking to your investment checklist:

• Meaning: Does this company align with my values and improve the world as it grows?

• Moat: Is its dominance ethical—or predatory?

• Management: Are leaders focused on long-term good, not just short-term profit?

• Margin of Safety: Even if it’s a great price, am I okay owning this business long-term?

These questions help you look beyond the numbers and into the impact.

Looking Ahead—What Happens After Big?

Every few decades, corporate giants get dethroned. IBM, AT&T, and other giants once seemed untouchable. Now, we hardly think about them.

With AI on the rise, we may be entering a new cycle. Maybe the next generation of companies will be built differently—with greater transparency and accountability. As investors, we can help shape that future by where we put our money.

“Maybe we’re at the end of this evolution of our current gigantic tech companies… and something new is coming.”

Final Thoughts: Grow Your Portfolio, Not Your Regrets

It’s okay to invest in growing businesses. That’s how we build wealth. But let’s be thoughtful about what we’re growing.

Investing isn’t just about returns. It’s about participating in the world we’re building for ourselves and future generations. Rule #1 gives us the tools to do both: grow our wealth and invest with intention.

So the next time you’re evaluating a stock, don’t just ask, “Can this company grow?” Ask:

“Do I want it to?”

Let’s make smart decisions—not just for our portfolios, but for the world we’re helping to build.