Post #7672 by PhoolishPhilip on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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Any sane investor should realize that if real sales for the S&P 500 rise at (say) 2.5%/year in the next 20 years, or whatever figure near that you might choose, then there is no conceivable reason to assume that aggregate net profits will rise any faster than that.

There is a way and I believe it’s partly responsible for the current trend in rising profit rates: growing inequality. Wages have been stagnant or declining for s as large segment of the workforce for 40+ years even as productivity has increased. There is no reason why this trend cannot continue.

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