What a chokepoint is
Most products depend on a long chain of suppliers. Somewhere along that chain there is often one material, part or process that only a few companies can make.
When demand rises, everyone further down the chain has to go through them. That narrow point is a chokepoint, and the companies sitting on it are the ones we research.
How we work
- Find the dependency We map what an industry cannot build without.
- Count who can supply it We check how few companies make it, and how hard it would be for anyone else to start.
- Read the primary sources Company filings, including SEC EDGAR, and trade publications come before opinions.
- Watch for pricing power Confirmed price increases and widening margins tell us whether the chokepoint is real.
- Say when we are late A thesis can be right while the share price already reflects it. When that happens, we say so.
Where to read it
We publish our research on X under the name Solace.
Contact
Questions, corrections or a company we should look at: