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It’s absolutely not true that investing in any assets besides cash will shield you from inflation. Inflation impacts companies very differently, and you want a
by eigenvalue 6y ago
It’s absolutely not true that investing in any assets besides cash will shield you from inflation. Inflation impacts companies very differently, and you want a preservation of real earnings power taking into account the need to replace plant and equipment over time. The best inflation protection would come from a company with a pure revenue royalty with fixed expenses. The worst would be a company with bad pricing power and lots of commodity inputs.
- redblacktree 6y agoIs there an easy way to determine which companies are which? Do I need to be well-studied in business, or is there a chart or key statistic I can look at to tell one from the other?
- eigenvalue 6y agoThis article gives a lot of good criteria for finding companies that should thrive in an inflationary environment: https://horizonkinetics.com/app/uploads/Q1-2020-CVALUE-Review_FINAL.pdf https://horizonkinetics.com/app/uploads/Q1-2020-CVALUE-Revie...
- deanmoriarty 6y agoWhat’s your recommendation for least-worse inflation hedge?