- Joined
- Aug 10, 2021
- Messages
- 1,269
- Reaction score
- 955
- Gender
- Male
- Political Leaning
- Independent
Gotta love him;
"In a classic piece for Fortune magazine in 1977, Buffett outlined his views on inflation: “The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital. ... If you feel you can dance in and out of securities in a way that defeats the inflation tax, I would like to be your broker — but not your partner.”
In a 1981 letter to shareholders, Buffett highlighted two characteristics that help companies thrive amid high inflation: an ability to increase prices easily and an ability to take on more business without having to spend too much.
In other words, invest in asset-light businesses with pricing power
Rule # 1: "Focus on companies that generate rather than consume cash."
Have you changed your portfolio to reflect the upcoming Fed moves and higher inflation, and if so how?
"In a classic piece for Fortune magazine in 1977, Buffett outlined his views on inflation: “The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital. ... If you feel you can dance in and out of securities in a way that defeats the inflation tax, I would like to be your broker — but not your partner.”
In a 1981 letter to shareholders, Buffett highlighted two characteristics that help companies thrive amid high inflation: an ability to increase prices easily and an ability to take on more business without having to spend too much.
In other words, invest in asset-light businesses with pricing power
Rule # 1: "Focus on companies that generate rather than consume cash."
Have you changed your portfolio to reflect the upcoming Fed moves and higher inflation, and if so how?