Warren Buffett's Law For Corporate Profits As Seen In One Quote | Exploring Markets

Warren Buffett's Law For Corporate Profits As Seen In One Quote

"In my opinion, you have to be wildly optimistic to believe that corporate profits as a percent of GDP can, for any sustained period, hold much above 6%. One thing keeping the percentage down will be competition, which is alive and well. In addition, there's a public-policy point: If corporate investors, in aggregate, are going to eat an ever-growing portion of the American economic pie, some other group will have to settle for a smaller portion. That would justifiably raise political problems—and in my view a major reslicing of the pie just isn't going to happen." -Warren Buffett

Sources:

- Warren Buffett interview with Fortune's Carol Loomis

- Jesse Felder on why one specific quote from Warren Buffett matters right now