Warren Buffett Says the Best Thing You Can Do When Inflation Is High Is to “Be Very Brilliant at Anything”
Inflation is wreaking havoc on the American economy, with prices for everything from gas to groceries skyrocketing.
Although there is little that individuals can do to prevent inflation at the cash register, Warren Buffett, the CEO of Berkshire Hathaway and a famed investor, believes that people can take steps to mitigate its consequences.
Buffett reiterated his long-held recommendation that one of the best ways to defend against inflation is to enhance your talents and work to be at the top of your field at the Berkshire Hathaway annual shareholders meeting in 2022.
“Being really good at something is the best thing you can do,” the 91-year-old stated on Saturday. “[People] are going to give you some of what they create in exchange for what you deliver,” Buffett remarked, citing doctors and lawyers as examples.
Skills, unlike the currency, are inflation-proof, according to Buffett. If you have a valuable ability, it will remain valuable regardless of the value of the money.
“Any abilities you possess cannot be taken away from you.” “They can’t inflate away from you,” he explained. “Anything you develop yourself is by far the best investment because it’s completely tax-free.”
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It’s similar to Buffett’s counsel from 2009, near the end of the Great Recession, when he remarked, “The best thing you can do is invest in yourself.”
Buffett also stated at the time that the next best thing a person could do is invest in “a magnificent firm” that produces things that are in high demand regardless of the dollar’s performance.
He gave the example of Coca-Cola, claiming that decades from now, people will still desire his favorite cola, with inflation having no bearing on their decision.
“It doesn’t matter what happens to the price level,” Buffett added because people will continue to pay for items they enjoy.