For example, an investor will say, "This stock has a lock on the market - a monopoly - it will grow at 25 percent a year forever." I ask, "What about high returns on equity bringing in competition or substitution?"
"Yes, that was true for IBM and Penn Central and oil, but this time it`s different because of (its patents, its management, its market position...)", you fill in the blank.
Well, in the law of economics, in the laws of history, in the laws of politics and in the laws of society, it is never different this time. The law of gravity isn`t ever suspended for someone`s convenience, and these laws are just as rigorous, though more subtle and complex.
in Investment Biker
