Buffett's comments on inflation

[cardude]

Sorry, about the mispelling.....

A compilation of BUFFETT'S comments on inflation over the years. Pretty interesting reading for those worried about inflation.

http://www.chanticleeradvisors.com/files/107293/Buffett%20inflation%20file.pdf

 

[haha]

Thanks for posting this. Many of these articles and interviews I read when they first appeared. I believe that he is correct, even though this has not become the typical way to view equities and inflation by investment people.

It's a free cash-flow based outlook, which requires a degree of business understanding to appreciate.

Ha

 

[HFWR]

Large gains in real capital, invested in modern production facilities, are required to produce large gains in economic well-being. Great labor availability, great consumer wants, and great government promises will lead to nothing but great frustration without continuous creation and employment of expensive new capital assets throughout industry.

Cut to the chase...

 

[NW-Bound]

Buffet wrote the article in 1977, when he was not even a hectomillionaire. See excerpt below. For all the gloominess of that era that he described, he turned out to do very well.

Buffett, who is now forty-six and still operating out of Omaha, has a diverse portfolio. He
and businesses he controls have interests in over thirty public corporations. His major
holdings: Berkshire Hathaway (he owns about $35 million worth) and Blue Chip Stamps
(about $10 million). His visibility, recently increased by a Wall Street Journal profile,
reflects his active managerial role in both companies, both of which invest in a wide
range of enterprises; one is the Washington Post.

And why does a man who is gloomy about stocks own so much stock? "Partly, it's habit,"
he admits. "Partly, it's just that stocks mean business, and owning businesses is much
more interesting than owning gold or farmland. Besides, stocks are probably still the best
of all the poor alternatives in an era of inflation - at least they are if you buy in at
appropriate prices."​