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So much for my finance lesson.

And like I said, Buffett and Munger have said the concept is nonsense. They are right about that, just like they are right about the non-efficiency of the markets and the frequent failure of the Black-Sholes options pricing formula for long-dated options.

Just because there is a fancy mathematical formula for something, that does not mean the underlying premise is correct.

What is your refutation of my premise that if Apple were simply able to maintain there current competitive position in the areas in which they already operate, then they would achieve a real, after-inflation return of 10% annually (not even counting the enormous cash hoard)? You can use a mathematical formula if you want.
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