Investment Thesis

 

THE ECONOMICS OF CHOKEPOINTS: A MANIFESTO

Why Owning the Toll Booths is the Only Way to Extract Alpha in a Capital-Intensive Era

Updated: October 10, 2026

Most market participants treat the technology sector as a software guessing game. They attempt to predict which artificial intelligence application will capture consumer attention, spreading capital across speculative ventures. Others take the supposedly safe route, buying broad market indices to capture average growth.

Both approaches ignore the physical reality of modern computing.

(YTD and vs 2024 returns are calculated as of October 2026)

THE DIVERSIFICATION TRAP

Purchasing broad indices like the S&P 500 actively dilutes your returns. We are living through a highly capital-intensive infrastructure cycle. When you buy an index fund today, you are purchasing hundreds of average companies whose operating margins are being actively compressed.

Why do they suffer this margin compression? Because every corporation on earth is forced to fund massive infrastructure upgrades simply to remain relevant. Their capital expenditure is not a choice; it is an existential tax. Broad diversification acts as a direct cash transfer from retail investors and average businesses straight into the pockets of a few structural monopolies.

REVERSING THE EQUATION

Our mandate is simple: bypass the customers and directly own the monopolies dictating the terms.

We concentrate capital strictly where absolute pricing power resides. We do not build the software; we own the physical bottlenecks and structural chokepoints that every tech giant must pay to operate.

This philosophy is built on four physical and digital pillars:

1. Silicon Lithography and Advanced Metrology Advanced computing obeys the strict laws of extreme physics. ASML holds an absolute global monopoly on extreme ultraviolet photolithography machines. TSMC manufactures the physical silicon. KLA and Lam Research dictate process control and metrology. These entities face zero competition and dictate pricing terms to the entire global supply chain.

2. Compute Architecture and High-Speed Interconnects Processors cannot function without high-speed data flow. NVIDIA and AMD design the accelerator microarchitectures. Micron supplies the high-bandwidth memory, while Broadcom and Marvell build the custom networking silicon linking data centers together. We own the pipelines that eliminate network latency and capture spending directly from hyperscaler budgets.

3. Hyperscale and Orbital Infrastructure Massive scale creates unbreachable moats. Alphabet, Amazon, and Microsoft operate hyperscale ecosystems with near-zero price elasticity of demand for computing hardware. They fund data center infrastructure regardless of short-term interest rates. In orbit, SpaceX dominates commercial launch capacity, operating as a closed-loop economic system.

4. Enterprise Ontology and Biological Compute Hardware compute remains ineffective without structured data. Palantir operates as the structural monopoly for institutional and governmental data deployment, with Palo Alto Networks securing the perimeter. Expanding this chokepoint thesis into biology, we treat Moderna not as a traditional pharmaceutical company, but as a programmable information technology platform acting as the architectural bottleneck for next-generation therapeutics.

THE MATHEMATICAL PROOF

This framework is not theoretical. It is a rigorous, data-driven approach designed to decouple from broad market beta. Capital expenditure inelasticity means that our monopolies extract economic rents regardless of macroeconomic cycles.

This concentration generated a +126.13% return since January 2024, significantly outpacing the standard +61.02% return of the S&P 500.

We do not chase trends. We demand mathematical certainty in supply chain dominance, and we aggressively concentrate capital in the entities building the physical infrastructure of the digital economy.

Actionable Execution: This exact allocation is managed publicly on eToro. External capital allocators and retail participants can mirror these exact holdings by searching for razvancd and selecting "Copy Open Trades".

Copy Trading is not investment advice | Capital at risk | Past performance does not guarantee future results.