When the laws of probability are forgotten

“Consider a great growth company whose prospects are so brilliant that they seem to extend into infinity. Even under the absurd assumption that we could make an accurate forecast of a company’s earnings into infinity – we are lucky if we can make an accurate forecast of next quarter’s earnings-what is a share of a stock in that company worth? an infinite amount?*” – Peter Bernstein on the Petersburg Paradox

 

I would read that to mean Fidelity, Musk, and Morgan Stanley can all go home now…

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