Warren Buffett has stated that there are two things that may be done to ‘protect against inflation.’
Many Britons attempting to make the most of their money are concerned about inflation.
With the global pandemic and interest rates at an all-time low, it appears that there is nothing that consumers can do to protect and stretch their money.
Warren Buffett, a billionaire investor from the United States, gave two tips to assist people avoid inflation.
Consumers throughout the world are still bracing for a price increase once the fear over COVID-19 subsides.
This probable inflation is an unavoidable part of the natural economic cycle, and the worldwide pandemic has surely exacerbated it.
So, what can individuals do on a personal level to try to weather the economic storm?
In 2009, shortly after the financial crisis of 2008, Mr Buffett spoke at Berkshire Hathaway’s annual shareholder meeting.
Despite the fact that his statements were written over a decade ago, the global economic market has seen just as much volatility in the last year as it did in 2008, suggesting that his words are still valid in this post-pandemic period.
“The finest thing you can do is invest in yourself,” says Mr. Buffett.
“If you’re the best teacher, physician, or lawyer, you’ll get a piece of the national economic pie regardless of the value of the currency.”
Upskilling oneself has very few drawbacks, and being at the top of whatever business or career one is in will assure monetary remuneration for all the hours spent honing these talents.
This is particularly true in countries with strong currencies, such as the United Kingdom, where the “piece of the national economic pie” can be stretched and utilised far more than in countries with weaker currencies.
Mr Buffett’s second advice for avoiding inflation was to invest, specifically in business rather than currency.
“If you control the Coca-Cola corporation, you will receive a certain percentage of people’s labor 20 years from now and 50 years from now for your product, regardless of the price level,” he added.
While not everyone can own Coca-Cola, it is a great illustration of how investing in a company rather than a product can pay off.
Considering Mr. Buffett’s long-term suggestions. “Brinkwire News in Condensed Form.”