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Robert: I apologize for not getting back sooner. I have been helping to set up a group for further analysis of Rule Breakers - a follow on to the recent RB seminar.

You said: GAP is far more tangible than CAP. ... There are simply too many variables. ... This process is clearly accelerating as ideas seem to be proliferating (It is interesting to think about why this is the case).

First, TMF Fuz (John) has added some quantitative help with GAP with his article on The Threshold Margin at

I'm not sure how or if this article helps with CAP, other than allowing a direct comparison of Threshold Margins between competitors.

The accelerating prolieration of ideas you note may be the result of a combination of 1) 95%+ of the scientists and engineers who ever lived are alive and producing today and 2) multitude of examples where the pursuit your ideas can be financially rewarding.

You continued: that 10 shares of Coke bought when the company went public in 1919 would now be worth $75 million!--some CAP, eh?

I suggest that Coke had viable competitors for most of those 81 years between 1919 and now. I think the growth to 75M reflects more "those joint engines of growth" that Tom Gardner referred to in his Oct 99 RM seminar - Time and Positive Returns, e.g, Compounding - than it does CAP.

Note: While the Market has dipped, swayed, and maybe built a base for future increases; many of the companies we talk about here at the GG board have continued to pursue 50 to 100% year over year Sales increases with improving margins. What else can they do, only add EVA to the economy. They do this thru wages to their employees, materials purchased, and building shareholder value.

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