Law of large numbers


This law is simply pertaining to the percentage of growth a company is shedding off as its market capitalization grows bigger. For instance, a 10 billion dollar company could possible grow to a 110 billion dollar company for a growth rate of 1,000%. Now from 110 billion a company would have a hard time to sustain another 1,000% increase. The most they can gain theoretically is 20% for a total of 132 billion dollar market cap.

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