It Just Can't Get Any Bigger

Eddy Elfenbein submits: Peter Lynch said he remembers people telling him 25 years ago that Wal-Mart (WMT) just couldn't get any bigger. That's an argument against a stock you should always ignore. With capitalism, profits are like jello...there's always room for more.

Check out this chart of Eaton Vance, the asset manager (EV):

Pretty spiffy, no? Thirty years ago, you could have picked up some shares for about $4 a piece. Adjusted for splits, that comes to 2.7 cents a share. In thirty years, the stock is up 100-freaking-fold.

So what's Eaton Vance's current market share of the mutual fund industry?

One percent.

Comments

[WC Whiner:]

Er, straw man?

2006 Sep 08 12:33 AM

[CrossProfit:]

2.7 cents to $27.00 is a thousand times greater, not a hundred. Now that’s impressive.

Disclosure: This is a personal comment by a CrossProfit analyst.
www.crossprofit.com

2006 Sep 08 03:45 AM