Inflation is part of the economic cycle. A company must be able to raise prices with inflation and do so without putting a huge amount of mon back into the business, thus negating the good effects. The dangers of debt will sink a company in bad economic circumstances. Even a short absence of credit can bring a company to its knees. Borrowers then learn that credit is like oxygen. When either is abundant, its presence goes unnoticed. when either is missing, that's all that is noticed.
In today’s episode, Danielle discussed words of wisdom on inflation shared from the letters of Warren Buffett.
In the letters, you’ll learn Buffet’s warnings to other investors that we do not know what will happen with the stock market or the underlying currency, and that long-term fixed interest bonds may not continue to serve as a financial instrument and may even become obsolete.
Danielle also digs into Buffett’s points that there may not be a corporate solution to the problem of growing inflation, however, he does explain other solutions.
To learn more about what type of companies to look for that can withstand inflation and this uncertain market, register for Phil’s NEW investing webinar: https://bit.ly/3GT2drc
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For show notes and more information visit www.investedpodcast.com.
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