#shorts #WarrenBuffett #inflation
Berkshire Hathaway Chairman and CEO Warren Buffett discusses inflation and prices going up.
Watch the 2021 Berkshire Hathaway Annual Shareholders Meeting on YouTube:

Subscribe to Yahoo Finance:

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit:

Connect with Yahoo Finance:
Get the latest news:
Find Yahoo Finance on Facebook:
Follow Yahoo Finance on Twitter:
Follow Yahoo Finance on Instagram:
Follow Cashay.com
Follow Yahoo Finance Premium on Twitter: …(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

“We’re Raising Prices… It Just Won’t Stop”: Warren Buffett On Inflation

Inflation, a term that often brings unease and uncertainty to the minds of investors and consumers alike, has become a hot topic in recent times. As prices of goods and services continue to surge, the legendary investor Warren Buffett recently shared his thoughts on this growing concern.

Buffett, often referred to as the Oracle of Omaha due to his remarkable investment acumen, is known for his clear and straightforward perspective on complex financial matters. In a recent interview, he acknowledged the current inflationary environment and highlighted its impact on his conglomerate, Berkshire Hathaway.

With various businesses under its umbrella, Berkshire Hathaway operates in many sectors of the economy. This diverse portfolio offers Buffett a unique vantage point to observe inflationary pressures across different industries. During the interview, Buffett admitted, “We’re raising prices. People are raising prices to us. And it’s being accepted.”

This statement holds significant weight, as it emphasizes how inflation permeates throughout the economy. Rising prices have become the norm, leading to increased costs for both businesses and consumers. Companies are facing higher input prices, ranging from raw materials to energy costs, and are thus passing these expenses onto the end consumer.

Buffett’s sentiments echo the concerns of economists and analysts who fear that inflation may not be a short-term blip but a sustained trend. The prolonged stimulus measures, massive government spending, and supply chain disruptions witnessed during the COVID-19 pandemic have all contributed to this inflationary environment. While central banks maintain that these circumstances are temporary, inflationary pressures persist, leaving many uncertain about the future.

As an investor, Buffett has stressed the importance of understanding the impact of inflation on investments. While certain businesses may benefit from inflation, such as those with pricing power or hard assets, others may struggle. Inflation erodes the purchasing power of money over time, affecting investments in bonds, cash, or fixed-income assets.

Notably, Buffett’s remarks shed light on the importance of businesses’ ability to pass on inflationary costs to maintain profitability. For companies unable to raise prices or facing resistance from consumers, shrinking profit margins may become a reality. This situation can be particularly challenging for small businesses that lack the pricing power or flexibility enjoyed by larger corporations.

However, Buffett remains optimistic about the long-term prospects of the American economy. He believes that the United States has unmatched resilience and prosperity, capable of overcoming various challenges, including inflation. Buffett explains, “When the game is being played, it doesn’t pay to get scared. But it does pay to be prepared.”

Buffett’s advice to investors is clear: be prepared for inflationary pressures and invest in businesses with durable competitive advantages and pricing power. These companies can navigate the inflationary storm by passing costs onto customers, thus safeguarding profitability.

As consumers, we can also take a leaf out of Buffett’s book and be prepared for rising prices. It is essential to anticipate and adjust our spending and saving habits accordingly. By being diligent and considering the potential long-term effects of inflation, we can better safeguard our financial well-being and make informed choices.

Although inflation may feel like an unstoppable force, it is crucial to remember that economic cycles are a part of our financial landscape. As we navigate this challenging period, Warren Buffett’s measured outlook and prudent advice provide invaluable insights to help us weather the storm and emerge stronger on the other side.