Henry Ellenbogen on migration trends and location independence

As a result of the pandemic, there has been a significant change in how and where Americans want to work.  I discussed this at last year’s Roundtable, and the past year has confirmed it: We are on the move in ways we haven’t been in many years.  People largely are moving to the Southern and mountain states, and Florida and Texas. 

We are monetizing the scale of America.  As we move from high-cost to low-cost locations, that unlocks productivity.  In addition, as people spread out, companies need to innovate to serve them.  That means innovating not only on digital platforms but also digitizing the U.S. enterprise.  That speaks to deflation.  It also unlocks innovation.  As people move away from medical centers, we are seeing telemedicine increase.  We need to provide better education and training remotely.  Last year, in recommending Intuit [INTU], I discussed the spread of remote tax and accounting services around the country.  What is happening in America is unique.  Most other countries are just countries.  We are basically a continent.

~ Henry Ellenbogan, CIO and managing partner, Durable Capital Partners, Barron's 2022 Roundtable, January 15, 2022