Post #7609 by Dagdom on the Berkshire Hathaway board

If someone appears to be repeatedly personal, lean towards patience as they might not mean offense. If you are sure, however, then do not deepen the problem by being negative; instead, simply place them on ignore by clicking the unhappy yellow face to the right of their name.

- Manlobbi

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

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in the long run profits, therefore value, can't rise faster than sales do.

Of course they can. Bring down the costs. COGS for a heavy non-recurring cost company like Meta and maybe even NVidia and in general all tech companies don't follow this logic at all.

No, it's a mathematical impossibility.
If profits rose faster than sales over the long run, then soon enough profits would exceed revenues, which obviously can never happen.

You are confusing two things. It’s of course true that margins are range bound, that is obvious. But that doesn’t mean that profits can’t rise faster than sales over the long run. They can, they are just bound by their range.

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