How To Cope with Inflation Pressure – Warren Buffett

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The best thing you can do is to be exceptionally good at something. People are going to give you some of what they produce in exchange for what you deliver. Mentioning professions like doctors and lawyers as examples.


Inflation has been the sustained and broad rise in the prices of goods and services over time, erodes purchasing power and one risk of higher inflation is that it has a regressive effect on lower-income families and older people in society.

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Inflation is always taking a toll on every economy as there is little individuals can do to avoid inflation at the cash register, but Berkshire Hathaway CEO and legendary investor Warren Buffett has explained how people can make certain moves to protect against its effects.

Speaking at the 2022 Berkshire Hathaway annual shareholders meeting, Buffett repeated his long-held advice that one of the strongest protections against inflation is sharpening your skills and working to be at the top of your field.

Warren Buffett: How He Does It

Buffett said, “The best thing you can do is to be exceptionally good at something. People are going to give you some of what they produce in exchange for what you deliver.” Mentioning professions like doctors and lawyers as examples.

He said, “If you have a skill that is in demand, it will remain in demand no matter what the dollar is worth. Whatever abilities you have can’t be taken away from you.

“Skills, unlike currency, are inflation-proof, they can’t actually be inflated away from you. The best investment by far is anything that develops yourself, and it’s not taxed at all.” The 91-year-old added.

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Buffett also said the next best thing a person could do is invest in a wonderful business that makes products that are in demand regardless of the performance of the currency.

Making Cola-Cola as case study, Buffett said people will still want his favorite soda decades from now, with inflation playing no role in their decision. “It doesn’t make any difference what’s happened to the price level because people will still pay for the products they like.” He said.

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