$Lululemon Athletica(LULU)$ I can't tell you how many people use that term "law of large numbers" to justify a sell so they an continue playing around with their money instead of investing it. The law or large numbers doesn't apply to investing. Period. With the small action to when a company has a store on every street corner in the world.
Anyone would tell you that $NVIDIA Corp(NVDA)$ 's revenue growth would need to considerably slow. They wouldve said that last year, last quarter, and they will say it next quarter too. This analyst has said the same, for lululemon.
The fact of the matter is, is the market saturated? Well, what's the TAM? A good 1-2 billion people who can afford LULU clothes. 500 bucks a year (avg. Across nations) on clothes, and shoes and workout gear would give us revenue of 500B. Current revenues are 10B. That is a huge runway. And by the way, lulu is the best. I don't buy $Nike(NKE)$ lol. Sometimes I buy at Marks. But it's usually Lulu.
Let's say instead, it's not 1 billion people it's 200 million. And it's not 500/year, it's 100/year. Thats still a TAM of 20B, not counting new product categories.
So please, stop talking about the law of large numbers. It doesn't apply until lulu is a lot closer to achieving its TAM. Revenues are not tied to previous revenues. Revenues can go up in leaps and bounds with new innovations, strong economies and successful expansions. We are looking at all three in the coming decade.
Hold your shares.
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