Buffett’s Best Inflation Stocks: These Stocks Protect Your Money and Help You Profit From Inflation

Inflation is more persistent than anticipated. The consumer price index has actually reached a new high in January 2022 with an annual inflation rate of 7.5% – the highest inflation rate since 1982. And the PPI which is an index that is more focused on the input costs producers have to deal with is also incredibly high, impacting businesses’ ability to generate profit. Thus, there is of course a relationship between inflation and the stock market.

And high inflation over a prolonged period of time creates problems, both for consumers and for businesses and thus also for stocks. So today you will learn how you as an investor can best navigate a world of rising inflation.

In the current high-inflationary environment it is incredibly important for investors to understand how exactly companies’ ability to generate profit is affected by high inflation. And once you have this understanding, you can figure out which stocks are better suited to achieve satisfying returns for investors in a high inflationary environment (i.e. how to invest during high inflation). So today, I will outline which two characteristics investors should look out for if they want to protect the purchasing power of their money (i.e. best inflation proof stocks, inflation stocks to buy).

In a video that I will show you Buffett talks about the fact that inflation in the cost of commodities often comes first and wage inflation usually follows a little later. Here we can also point out that when producers face input cost inflation, the increases in their production costs are also usually only slowly – if ever – passed on to retailers and consumers. That is why the PPI index which is focused on the costs of the industries that make the products is often seen as a pre-indicator of inflationary pressures at the consumer level (CPI index). And so of course, a business’s profitability will at least in the short term likely be affected by inflation.

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OTHER LINKS:
○ Warren Buffett on Inflation:
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○ Heikki Keskiväli Twitter Thread on Inflation:

MUSIC:
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Chapters:
0:00 Intro
1:30 Warren Buffett’s take
2:49 Construction Input Prices
3:15 Leading & lagging indicators
4:00 How businesses are impacted
5:55 Impact of consumer price inflation
6:41 WD-40 cost of goods sold
7:44 Look for these companies 1
8:55 Terry Smith’s take
9:15 Homebuilder vs. Adobe?
10:36 My portfolio
11:09 What investors should do
11:40 Expanding our model
12:09 Look for these companies 2
13:07 Another Warren Buffett take
13:32 Superiority of these stocks

DISCLAIMER:
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

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