477: FROM THE VAULT: Warren Buffett's Inflation Principles
Description
At the end of the 1970s and the early 1980s, a decade of financial instability and high inflation rates led Warren Buffett to ponder the correct path forward for Berkshire Hathaway in his letters to shareholders. His solutions in those years could hold some valuable information for investors as we find ourselves once again in turbulent times.
While the financial, societal, and cultural contexts have drastically changed over the course of three and a half decades, the underlying business principles and inherent behavioral characteristics can offer insights into how wise investors can find success during times of uncertainty in the modern world.
This Vault episode offers us a glimpse into both the recent and not-so-recent past as Danielle considers how a post-pandemic world can benefit from Buffett’s wisdom following one of the most volatile decades of the 20th century.
For help with protecting your investments in unstable markets, get your free copy of the Rule #1 Inflation-Ready Checklist: https://bit.ly/3yyrDdS
Topics Discussed:
- Berkshire Hathaway shareholder letters
- Inflation in the 70s/80s
- Indexing investments to inflation
- Investing into companies with little debt
- Prioritizing gains in purchasing power over earnings
- Post-housing bubble concerns related to 30 years prior
- Anti-fragility
Resources Discussed:
- DanielleTown.com
- Buffett’s 1979 letter
- Buffett’s 1980 letter
- Buffett’s 1981 letter
- Buffett’s 1983 letter
- Buffett’s 2010 letter
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