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Strategies & Market Trends : Buffettology

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To: jhg_in_kc who wrote (373)	9/25/1998 7:09:00 PM
From: James Clarke	Read Replies (1) of 4691

And if Dell's earnings grow at 44% for ten years its net income will be 53 billion dollars. I know that's not the argument you are making, but it is its illogical extension. I think that somebody who knows the size of the computer industry and its growth rate will be able to have some fun with that. A growth rate of 44% is inherently unsustainable except for a very small company. You don't think years, you think quarters. And when the music stops, it will just be a simple announcement, which anybody with any common sense could predict. "Dell cannot grow at 40% indefinitely." Look at what happened to CATP a couple weeks ago when they said precisely that. JJC

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