Paul Tracy

It's the best way I know to create significant wealth in the stock market.

It's been one of the guiding principles for my $100,000 portfolio in my Top 10 Stocks advisory, my selections for the 10 Best Stocks to Hold Forever, and my Top 10 Stocks for 2012.

Put simply, you can make a lot of money investing in companies that dominate their market.

But I doubt that's news to you. You've heard something similar for decades. Today, I want to prove to you that this technique works.

For example, take Philip Morris International (NYSE: PM).

Philip Morris dominates the cigarette industry thanks to its ownership of seven of the world's top 15 brands, including Marlboro, the No.1 cigarette brand worldwide. It's not a complex business. And you don't need to be a hedge-fund manager to see why owning Philip Morris is likely to make you money.

Its dominant position in its market has led to huge gains for investors. And those gains all start with company profits.

Philip Morris' net profit margin stands at 28%. This means the company turns nearly a third of its revenue into pure profit.

Most companies don't even come close to this. The average net profit margin for all members of the S&P 500 is 11%.

When you invest in world dominators like these, good things tend to happen.