The world-renowned investor, businessman, revived at Berkshire Hathaway’s annual general meeting his long-standing advice that the most effective defense against inflation is to build our skills and rely on our capabilities to put us at the forefront of our skills, CNBC reports.
The best we can do in an inflationary environment is to be exceptionally good at something.
He cited professions such as doctors and lawyers as examples. Buffett said people “give some of what they create in exchange for what we know”.
skills are inflation-resistant as opposed to currency.
If we have a skill that is in high demand, the demand for it will persist even if the dollar loses value. Our value-added capabilities cannot be taken away from us, they cannot be affected by inflation, he said.
The best investment is one that is about developing ourselves, and you don’t even have to pay tax on it
In 2009, at the end of the Great Depression, Buffett also revealed what he thought was the second best thing one could do: invest in a business that produces products that are in demand regardless of the performance of the dollar. An example of this is Coca-Cola.
(Cover photo by Warren Buffett on March 13, 2007. Photo: Chip Somodevilla / Getty Images)