For Buffett, skills, unlike currency, are inflation-proof. “If you have a skill that’s in demand, it will stay in demand no matter what the dollar is worth.” affirms the reputed investor.
And it is that after arguing for years that high valuations were frustrating its share-buying efforts, Berkshire is back in action. The conglomerate made about $41 billion in net purchases in the first quarter, including an increase in its stake in Chevron Corp that pushed the investment into the top four holdings of Berkshire common stock.
Buffett also revealed that the company now has an expanded 9.5% stake in the shares of Activision Blizzard Inc, an arbitrage bet on the video game maker amid its takeover by Microsoft Corporation, according to Bloomberg.
Berkshire’s massive common equity stake in Occidental was one of its biggest purchases disclosed in the first quarter and came on top of the $10 billion Berkshire had already invested in the oil producer years ago.
Maintaining your investment strategy despite high inflation is advice similar to that shared by Buffett in 2009 at the end of the Great Recession, when he said: “The best thing you can do is invest in yourself“recalled CNBC.
At the time, Buffett also said that the best thing a person can do is invest in “a wonderful business” that makes products that are in demand regardless of how the dollar performs.
“No matter what has happened to the price level, because people will continue to pay for the products they like,” concluded.
Source: Ambito
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