477: FROM THE VAULT: Warren Buffett's Inflation Principles

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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