Aim for a monopoly, settle for an oligopoly
Richard returned several times at 2026 Family Office Club events to an idea he credits to Peter Thiel. Thiel shoots for monopolies but will settle for an oligopoly. Richard applies it to how founders pick a niche.
Do not pick a crowded field
Richard says it is not smart to choose something where you compete with lots of people. He hates entering a space with a thousand others, even if it fits every other test. In his words, you are dead in the water.
Define the field narrowly
If you define the field narrowly and pick something high value, you do not have to beat many people to be number one. Richard cites Robert Cialdini's research that being able to say you are number one raises your credibility.
Positioning monopoly
Most people cannot own a market outright. Richard suggests a positioning monopoly instead: be better placed than everyone else in your niche. He gives examples of how narrow to go, like publicly traded royalty investing or San Diego senior living.
In Richard's words
"Peter Thiel says that he just shoots for monopolies, but he'll settle for an oligopy." (Richard C. Wilson, 2026 Family Office Club event)
"So, it's just not smart to choose something where you compete with lots of people." (2026 Family Office Club event)
"If you define the field narrowly to something that's really high value, now you don't have to beat that many people to be number one, right?" (2026 Family Office Club event)
How to use this
- Count your direct competitors. If it is dozens, narrow the niche.
- Write a one-line niche you could credibly be number one in.
- Pick narrow and high value, not narrow and tiny.
- Aim for a positioning monopoly if a real one is out of reach.
Questions and answers
What does aim for a monopoly mean?
Pick a space where you face little or no competition. Richard credits the idea to Peter Thiel, who he says will settle for an oligopoly.
What is a positioning monopoly?
Richard's term for being better positioned than everyone else in a niche, even if others still compete.
How narrow should a niche be?
Narrow enough to be number one, but still high value. Richard's examples include San Diego senior living.
Why does being number one matter?
Richard cites Cialdini's research that claiming number one in something raises credibility and authority.