Jakarta, CNBC Indonesia – Inflation has a negative impact on economic conditions. Everything from gas to groceries will see a sharp rise in prices due to the impact of the Russo-Ukrainian war and the rise in foodstuffs in China.
Berkshire Hathaway CEO and legendary investor Warren Buffett says that there are certain steps to protect yourself from the effects of inflation. One of them is to improve skills.
“The best thing you can do is be really good at something. People will pay you a share of what they make in return for what you give,” he said.
According to him, skills are not like money, and will be resistant to inflation. Someone who has the skills will remain in demand no matter what the dollar value is.
“The best investment by far is anything that develops in yourself, and is not taxed at all,” Buffett said.
It is known, the message was shared by Buffett in 2009 at the end of the recession. At that time Buffet emphasized the need to invest in yourself.
At the time, Buffett also said the next best thing a person can do is invest in a business so that it can create a product of interest without impacting the dollar’s performance.
He gave the example of the Coca-Cola company. According to Buffett, people will still want their favorite soda decades from now, where inflation plays no role in that decision.
“It makes no difference what happens at the price level because people will still pay for the products they love,” Buffett said.