Warren Buffett’s Response to March Inflation Data: Our Success is Not Based on Speculation or Numbers

by | Sep 13, 2023 | Invest During Inflation | 19 comments

Warren Buffett’s Response to March Inflation Data: Our Success is Not Based on Speculation or Numbers




Berkshire Hathaway’s Warren Buffett joins ‘Squawk Box’ from Tokyo to react to the latest consumer price index data from March. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

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Warren Buffett, the iconic investor and billionaire, recently shared his thoughts on the latest inflation data for the month of March. Known for his pragmatic approach to investing, Buffett emphasized that he and his team do not rely on statistics or guesswork to make profits in the market.

Inflation has been a burning topic of concern for economists and investors worldwide, as the economies try to recover from the devastating impact of the COVID-19 pandemic. The recent uptick in inflation has raised doubts about the potential risks it poses to financial markets and businesses.

However, Buffett remains unfazed by market speculation and the noise surrounding inflation. While some investors may be poring over inflation data, trying to predict its impact on various sectors, Buffett takes a different approach. He firmly believes in investing in quality companies for the long term, regardless of short-term fluctuations caused by macroeconomic factors.

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Buffett’s methodology centers around understanding businesses deeply and focusing on their intrinsic value. He has repeatedly advised investors to place importance on the fundamentals of companies rather than trying to predict market movements based on macroeconomic indicators.

His investing philosophy is built on the belief that if you invest in a strong company with a moat, meaning it has a competitive advantage that keeps competitors at bay, it will continue to grow and generate profit over time. Buffett has demonstrated this strategy with his highly successful conglomerate, Berkshire Hathaway, which boasts a portfolio of diverse businesses ranging from insurance to consumer goods.

Rather than getting caught up in the complexities of analyzing inflation data, Buffett suggests that investors focus on finding businesses that possess sustainable competitive advantages. These are the companies that can weather economic storms and still show consistent growth.

Buffett’s disregard for macroeconomic forecasts and statistics may seem counterintuitive to some, but his track record speaks for itself. He has outperformed the market for decades, accruing immense wealth through prudent investment decisions.

While many investors may be scrambling to adjust their portfolios in light of inflation concerns, Buffett remains confident in his strategy. He understands that businesses with strong fundamentals will eventually overcome short-term obstacles, including inflationary pressures.

In essence, Buffett’s message is clear: do not rely on statistics or guesswork to make investment decisions. Instead, focus on finding businesses with solid financials, competitive advantages, and long-term growth potential. By following this approach, individuals can align their investment strategies with that of one of the most successful investors of our time.

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It is crucial to note that Buffett’s perspective does not undermine the significance of understanding macroeconomic trends. However, he emphasizes the importance of not letting these factors dictate investment decisions. His long-term perspective and commitment to quality have consistently proven successful, allowing him to amass one of the largest fortunes in the world.

As the world grapples with inflation and its potential implications, Warren Buffett’s approach provides valuable insights for investors seeking stability and sustainable returns. In these uncertain times, focusing on the fundamentals and avoiding speculative bets based on short-term market movements would undoubtedly be a prudent path to follow.

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19 Comments

  1. soja kia

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

  2. Alex Steven .M

    I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income

  3. Albacus

    The fin-Markets have underperformed the U.S. economy as fear of inflation hammers the prices of stocks and bonds. My $400,000 portfolio is down by approximately 25%, any recommendations to scale up my returns before will be highly appreciated.

  4. BlueStratDude

    Why doesn't CNBC moderate these comments? Every video has piles of garbage comments, just thread after thread shilling financial advisors.

  5. CurateHub

    Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less than $150k per year, but nothing to show for it yet

  6. kenny thompson

    Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, I mean I've heard of people making up to $300k during this crash and I'd like to know how.

  7. Abdul Salam

    To make money you need a lot of money. Do not think you can make money with your 10k

  8. Bell Joe

    Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.

  9. Alexis Anders

    The fact that inflation is still far higher than the Fed's 2% target, makes several market analysts express their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.

  10. IndianMedic

    Economic textbooks by who ?

  11. Norma Ward

    The fin-Market have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfoliio of $250k is down to $192k any recommendation;s to scale up my return;s during this crash will be highly appreciated.

  12. Nelson Hogquist

    Buffet stuttering and stammering

  13. Luuk De Haan

    Buffett accumulated his wealth over 80 years and is portrayed next to a graph on gold in the past 3 hours and above a headline about inflation cooling down in March… this is almost disrespectful.

  14. Clinton Ogle

    With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio

  15. Camdem Franklin

    Stocks are falling and bond yields are rising, but markets
    still don't seem convinced the Federal Reserve will pursue
    plans to keep increasing interest rates until inflation is
    under control. I'm still at a crossroads deciding if to
    liquidate my $150,000 stock portfolio, what's the best way
    to take advantage of this bear market?

  16. Derek P

    to get 1 hour dinner night with WB you need to donate over 150K. Just saying.

  17. K.V. Krasnenko

    No doubt, Warren Buffett and Charlie Munger always looked at thing positively, especially when they stay in their circle of competence. They know what to do

  18. jessica moore

    Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.

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