Higher inflation, lower growth and a smaller working population — in particular, if productivity cannot compensate for the smaller workforce — is often termed a demographic drag. On the other hand, technology, automation and AI can raise productivity. But this is a slow process.
There is but one Warren Buffett, a nonagenarian investor who continues investing into his 90s. However, his investing philosophy has not changed much over these many years. He is a value investor — and a passive one — who believes in investing in good businesses with a strong moat, trading at less than their intrinsic values. And he is a long-term investor.
Throughout most of Buffett’s life, the US was reaping a demographic dividend. And it may continue to do so despite high-income countries experiencing lower births than deaths.
