How to profit as inflation takes off
Each year I spend time reading through Warren Buffett’s annual shareholder meeting to see what’s on his mind and where he sees risks in the global economy. I remember attending the meeting in 2007 – it’s a spectacle.
Buffett is not only a great investor but a master businessman. He doesn’t consider himself a stock picker but instead as someone who invests in businesses. His 2021 meeting took place on May 1 and something very important stood out to me. The threat (or opportunity) of inflation.
“We are seeing substantial inflation,” Buffett said. “We are raising prices. People are raising prices to us, and it’s being accepted.”
He pointed to much higher steel costs impacting Berkshire’s housing and furniture businesses.
“People have money in their pocket, and they pay higher prices ... it’s almost a buying frenzy,” he said, noting that the US economy is “red hot.”
I believe inflation is the single biggest
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