http://longorshortcapital.com/short-the-law-of-large-numbers.htm We dividend our ad money to you. Wed, 28 Jul 2010 14:05:23 +0000 hourly 1 http://wordpress.org/?v=3.0 http://longorshortcapital.com/short-the-law-of-large-numbers.htm/comment-page-1#comment-1561 DWM Thu, 21 Sep 2006 20:28:58 +0000 http://longorshortcapital.com/short-the-law-of-large-numbers.htm#comment-1561 Great post - this has long been one of my biggest pet peeves in Wall Street jargon. Adding to the group, why do so many people misuse the phrase "order of magnitude?" It is very simple - an order of magnitude refers to something 10x larger or 1/10th the size. When people say things like "SG&A should be about $1-$1.2 billion, that order of magnitude" it is simply moronic. Clearly, SG&A for that company is not going to be $100 million or $10 billion... Great post – this has long been one of my biggest pet peeves in Wall Street jargon. Adding to the group, why do so many people misuse the phrase “order of magnitude?” It is very simple – an order of magnitude refers to something 10x larger or 1/10th the size. When people say things like “SG&A should be about $1-$1.2 billion, that order of magnitude” it is simply moronic. Clearly, SG&A for that company is not going to be $100 million or $10 billion…

]]> http://longorshortcapital.com/short-the-law-of-large-numbers.htm/comment-page-1#comment-1554 Mr Juggles Thu, 21 Sep 2006 17:07:52 +0000 http://longorshortcapital.com/short-the-law-of-large-numbers.htm#comment-1554 They should more accurately say "The growth of our earnings growth is Decay Driven now that we have hit up against the Law of Diminishing Returns." They should more accurately say “The growth of our earnings growth is Decay Driven now that we have hit up against the Law of Diminishing Returns.”

]]> http://longorshortcapital.com/short-the-law-of-large-numbers.htm/comment-page-1#comment-1553 Agnar Kapundo Thu, 21 Sep 2006 16:40:57 +0000 http://longorshortcapital.com/short-the-law-of-large-numbers.htm#comment-1553 Excellent advice. May I also suggest going Short on Senior Management that toss around the phrase "Process Driven" when they wouldn't know a Process if it bit them on the ass? Scratch that: instead read "when the only Process they're familiar with is Decay?" Excellent advice. May I also suggest going Short on Senior Management that toss around the phrase “Process Driven” when they wouldn’t know a Process if it bit them on the ass? Scratch that: instead read “when the only Process they’re familiar with is Decay?”

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