Peter Spiller on Value Investing, Navigating Inflation and Delivering 15% Annual Returns
Macro Hive Conversations With Bilal Hafeez
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The Effect of Inflation on the Market
In 73, 74 British corporations were on the verge of bankruptcy because they paid corporation tax on profits assessed on a FIFO basis. So if you bought something, cost your pound to make and you were selling it for two pounds at the beginning of the year,. And at the end of the year, it costs you two pounds to make andYou were selling for three pounds to 30. The corporation tax would be on the difference between one pound and two pounds. But it was costing you twopound to replace what you just sold. That cash flow squeeze was simply fantastic.
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