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Should profits?

• sokoloff 5y ago
  Great question! Profits of the most successful companies (the ones most skilled at making strategic, marketing, investment, and other business decisions) probably should (at least “will” and I’m fine with “should”) rise faster than inflation while profits of companies who are not good at these decisions should rise less quickly than inflation (or even fall or become negative). I’d expect there to be a subset of companies who have grown their profits faster than inflation and for survivorship bias to mean that appears very common in a backward-looking point-in-time snapshot.