Grantham Calls Profits Freakish That Doll Says Are Here to Stay

U.S. companies are the most profitable in more than 40 years, and some of the best-known stock pickers are divided over how long that will last.

Bob Doll, chief equity strategist at BlackRock Inc., said low labor costs and cost-saving technology will allow companies to keep up their profitability. Jeremy Grantham, chief investment strategist of Boston-based Grantham, Mayo, Van Otterloo & Co., said margins will send stock markets tumbling when they eventually revert to their mean.