ko024, while I agree that the term is probably misused, and may have been misused this time as well. There is still a relation to the "law of large numbers" and the statement that Apple will plateau (ie will not rise indefinitely.) The relation is that if make the reasonable assumption that the Apple's average stock price (over it's entire existence... future and past) is finite then it will "plateau" at some point. I'm not saying that point is higher or lower than $1,000.... I'm just staying that in order to have a finite average stock price it can not be monotonic from this point forward.
But I agree with your general statement. "law of large numbers" does not indicate when the plateau would occur (or its value.) It does speak to the notion that finite averages exclude monotonic increasing functions.
You might be referring to a regression toward the mean more than LOLN... somewhat similar but quite different... My point is, that in LOLN you have a theoretical mean. An actual statistic that says, it SHOULD be this,,... why is that number less than 1,000 for apple..?? it is not... People just use the law of large number as a catchy saying for that apple has become "too big"... people fear that which they do not know... In 1970, people said, no company could EVER be worth 1 billion, the "law of large number" will catch up to them.... wtf...??? idiots... those same people are the idiots today.... apple will average out to their mean after market saturation and no more new product categories... how that equates to something less than 100% growth from here is beyond me... after china mobile and growth in emerging markets due to IP4 being "free" the phone business ALONE will get us to 1,500, easily... I would say, that if I am being truely honest, apple will average out at about $3,000 in 2020s, after reaching a peak of $4,000 sometime before then... this seems more reasonable than, apple wont make it to 1,000.... wtf..??? haha