Jim, you must have analyzed historical data to conclude that, in general, nominal earnings tend to keep pace with rising inflation, with a few exceptions that you have mentioned. (as you always seem to make opinion based on historical data rather than on hunch)

Here is my dilemma.

Considering the essay written by Buffett, (csinvesting.org - Inflation Swindles the Equity Investor), does it not imply that earnings fail to keep up with inflation?

From a layman's perspective, as I think of simple cases, it seems challenging for companies to maintain earnings growth. Let's take the example of a bottle of shampoo that used to sell for $10 say at Walmart. with Walmart's net profit being around 30 cents (3%). If the price of the shampoo increases to $10.50, it is likely that the profit margin may stay at 3% or even decrease. Walmart is unlikely to aim for more than 30 cents in profit from the increased prices. Alternatively, are you suggesting that increased revenue leads to profit growth, even if the margin remains the same? To counter than, I would think most companies would not possess such pricing power.

In any case, would love to hear your thoughts as there are always fun and has depth.