Law of Large Numbers

Search for glossary terms (regular expression allowed)

Glossaries

Term Definition
Law of Large Numbers

An economical law which states that growth rates will decline when companies become bigger. A high growth rate is unsustainable, simply because the company would otherwise become bigger than the entire world economy at one point. This law implies that investing in small-cap stocks offers more growth potential.

Author - Nick Kraakman
Hits - 225
Value Investing Bootcamp - Online Investment Course