re Dell has been growing very quickly for the last 2 yrs . When a company reaches a certain size it is no longer able to generate the rapid growth it has in the past since the competition gets more serious with its pricing and shear size prevents rapid growth
Brian, that sounds reasonable, but I suspect it is a platitude for those who are unwilling to make the effort to continually research the fundamentals of their investments--a placebo for those incapable of thought. How does one determine when that point of diminishing growth has been reached?
When a company has achieved a certain market share, say 50 or 75%?
When a company has achieved a certain mile marker in sales, such as $5 million, $500 million, $50 billion, or $5000 billion?
When a company has achieved a certain point of market saturation, such as 40%, 70%, or 85% of all potential buyers?
And once you determine that for a static product, one which is no longer evolving, how does one determine the point for a product which is improving daily in terms of capabilities and speed? What would you say DELL growth potential would be if it tomorrow announces the home entertainment/computing center par excellence?
Wake up and smell the coffee!
regards, 3 |
