the world hasn’t begun to address the problems of excess capital and the excess production capacity that it creates under current economic rules, the global economic recovery is going to turn out to be extraordinarily profitless in industry after industry as producers with excess capacity cut prices in an effort to buy market share.
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To avoid the trap of excess capacity killing even modest profits I think you have to look for sectors that have barriers that prevent excess capacity from driving down all prices as companies slit each other’s throats to acquire profitless market share.
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Cisco is the IBM of the Internet—companies can buy the company’s gear and know that it will talk to the rest of the gear in their network (because Cisco probably sold them a good part of that gear and because everybody makes sure their gear works with Cisco equipment.) Plus Cisco has used recent acquisitions to continue its transformation from a simple—but globally dominant–seller of routers into a company that builds unified digital communications systems.

A second is Google (GOOG). Yes, Google stands a good chance of getting kicked out of China with its 1.3 billion potential Internet users (How old does a baby need to be to use the Gmail?). But no company is better positioned for the long-term trend toward distributed computing over the Internet than Google.