Warren Buffett – “We Are Seeing Substantial Inflation”
Earlier today I showed you Steps To Take Now As Inflation Rises…
More proof inflation is coming fast came from Warren Buffett at his annual Berkshire Hathaway annual meeting over the weekend.
He said “we are seeing substantial inflation…”
… and we’re raising prices.”
This is huge news from one of the worlds largest and most diversified companies.
Berkshire Hathaway has wide ranging operations in candy, shoes/boots, furniture, railroads, energy, insurance, and much more.
Buffett said almost across the board his companies are seeing higher prices… Specifically in energy, furniture, and railways due to rapidly rising steel prices.
And its not just Berkshire Hathaway… This morning I sent you examples of a few companies raising prices.
Here’s more according to Yahoo Finance…
The number of mentions of “inflation” during first quarter earnings calls this month have tripled year-over-year, the biggest jump dating back to 2004, according to fresh research from Bank of America strategist Savita Subramanian. Raw materials, transportation, and labor were cited as the main drivers of inflation.
Subramanian’s research found that the number of inflation mentions has historically led the consumer price index by a quarter, with 52% correlation. In other words, Subramanian thinks investors could see a “robust” rebound in inflation in coming months in the wake of the latest round of C-suite commentary.
“Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (Consumer/Industrials/Materials, etc.) citing inflation pressures,” Subramanian notes.
The world’s biggest companies are taking action, just like Buffett at Berkshire.
Proctor & Gamble said recently it would begin to hike prices on baby care, feminine care and adult incontinence products in the United States. Price increases will range from mid- to high-single digit percentages. The hikes will go into effect in mid-September.
Whirlpool CFO Jim Peters recently told Yahoo Finance Live the appliance maker just jacked up prices by 5% to 12% to counteract rising steel costs.
Kleenex maker Kimberly-Clark said it will increase prices in the U.S. and Canada on the majority of its consumer products due to “significant” commodity cost inflation. The percentage increases will range from mid- to high-single digits and go into effect in June.
Emphasis is mine above…
This research shows that prices are rising at their fastest rate since 2004 on many assets… And that these metrics lag – which I mentioned last week… Meaning we’re going to see even higher inflation in the coming months.
None of this is good for you and your retirement portfolio.
To find out how to protect your portfolio from inflation and the other risks I see out there read the following articles.
- Steps To Take Now As Inflation Rises
- What Should You Do As Home Prices Skyrocket?
- Do This As US GDP Grows At The Fastest Rate In 40 Years
- Why You Must Build An Emergency Fund Now
- 1 Tip To Protect Your Retirement – Avoid Bonds
And do the following with any extra money you can generate… Make sure you’re invested in great stocks that have the following traits…
- They’re cheap.
- They have little to no debt compared to a lot of cash.
- They produce large profits and cash flows.
- They pay dividends.
- And make sure they aren’t in industries that could be hammered by Covid.
These kinds of stocks – the ones I try to find for you every day – are things you should continue investing in because they will provide you good to great returns no matter what the market is doing.
All while protecting you from the major risks like valuation, unemployment, debt, and inflation.
Here are some of those stocks I’ve already found for you to consider investing in to protect your portfolio…
Your guide to financial freedom and achieving your retirement goals.
Always in your service,
Publisher Stock Market Daily
P.S. Breaking Poll – Are You Scared To Invest Right Now? Vote Here