As consumer prices continue to rise, the “Oracle of Omaha,” billionaire business tycoon Warren Buffet gives advice on how not to fear the effects of inflation. The Berkshire Hathaway CEO who has been consistently at the top of the list of the world’s richest persons, says there are two Important things to do: one is to be great at what you do, and the other is to build your retirement savings by investing in low-cost stocks.
Prices are said to be at the highest inflation rates today, compared to the inflation rates of the past decade. Some economists fear that the continuing rise could wreak havoc on an economy that is still trying to recover from the devastating effects of the worst pandemic ever. Yet other economists and financial experts like Warren Buffet say it’s nothing to lose sleep over.
The 78-year old billionaire who is also a legendary stock market investor says inflation cannot be avoided; but if you’re great at what you do, you will always have a share of your country’s economic wealth. Mr. Buffet said that regardless of the current value of the currency, you will always earn your fair share of revenues if you’re the best in your profession whether as teacher, surgeon, lawyer or whatever occupation you’re engaged in.
Secondly, the next best thing to do to protect yourself against inflation is to invest in yourself by owning a part of a wonderful business, one whose product will still be in demand regardless of what happens to the value of the dollar; or of the currency that revolves in your economy.
Buffet’s Epic Advice When Investing in the Equity Markets
Mr. Buffet has long been recommending that when investing in shares of stocks, it’s always best to consider the low-cost index funds instead of choosing a single company as investment vehicle.
He explained that aside from being less risky, the low-cost stocks of companies whose products are forever in demand are held in every low-cost index, which automatically makes them diversified in nature. As examples, he cited major companies like Coca Cola, Google and Apple as also being included in the Standard & Poor (S&P) 500 List.
Diversified index funds have always been Mr. Buffett’s recommendations to people who are looking to grow their retirement savings. Mainly because they are the most practical investments in all times.
In a 2017 interview by CNBC, the billionaire philanthropist said
”Through thick and thin, consistently put your money in an S&P 500 low-cost index fund, especially in times of thin.”