Warren Buffett holds the sixth position on the list of the world’s wealthiest individuals, with an eye-watering net worth of $118 billion, trailing only Elon Musk, Bernard Arnault, Jeff Bezos, Larry Ellison, and Bill Gates.
In contrast to certain other billionaires of his era, the CEO of Berkshire Hathaway appears to derive contentment from a modest lifestyle. Even in periods of inflation, his approaches to foundational investing and wealth accumulation remain refreshingly straightforward.
Although only a select few possess Buffett’s exceptional investment skills, the billionaire contends that safeguarding oneself against inflation remains achievable by adhering to one of his fundamental principles.
“Whatever abilities you have can’t be taken away from you. They can’t be inflated away from you,” he said. “The best investment by far is anything that develops yourself, and it’s not taxed at all.”
At 92 years of age, he asserts that there’s no need to excessively pursue skills that don’t contribute significantly, particularly during these challenging inflationary periods. Instead, his advice is to excel in everyday tasks. He highlights the significance of proficient communication, considering it among the foremost vital skills.
Naturally, successfully navigating inflationary periods demands more than just adept communication abilities. After you’ve allocated resources for personal growth, it might be prudent to contemplate investing in some of these widely favored strategies for safeguarding against inflation.
Real Estate
Buffett typically considers real estate to be a favorable investment option during inflationary periods.
To expand your real estate holdings beyond your primary residence, an option is to invest in a residential real estate investment trust (REIT), as indicated by Buffett. These REITs are traded publicly and amass rental income from tenants, which is then distributed to shareholders as dividends.
Stocks pricing power
Buffett holds a preference for businesses of high quality that demand minimal capital input—much like Apple (AAPL). Apple exhibits impressive financial metrics that underscore the company’s efficiency, resilience, and bargaining clout, factors that have facilitated its success amid the current inflationary environment.
Remarkably, the tech giant now occupies the position of Berkshire Hathaway’s premier stock holding, valuing at $177.6 billion as of June 30, 2023, encompassing over 45% of the conglomerate’s entire portfolio.
A finer alternative?
Of course, acquiring dividend stocks isn’t the sole method of generating investment returns.
In the midst of surging inflation and an unpredictable economy, fellow billionaires like Jeff Bezos and Bill Gates are discovering innovative strategies to efficiently deploy their substantial capital.
Perhaps the most unexpected, and possibly lucrative, of all of Gates’ investments could be his gargantuan art collection. Estimated to be valued at $124.3 million, even including a work by the legendary Leonardo da Vinci.
Gates’s first known major art purchase, was “Distance Thunder,” a 1961 painting by Andrew Wyeth. Gates bought it for $7 million in 1996.
His most famous acquisition is “Lost on the Grand Banks” painted in 1898 by American artist Winslow Homer.
Gates bought it on the centenary of its painting for an eye-watering $36 million—the highest price ever paid for an American painting at the time.
Finally, Gates purchased the famous Codex Leicester—a particularly coveted collection of Leonardo da Vinci’s writings—for $19 million and then scanned and distributed it digitally.
“I really had a lot of dreams when I was a kid, and I think a great deal of that grew out of the fact that I had a chance to read a lot.” Gates once said.
There can be little doubt that his art is one of his most coveted investments. And it’s paying off big time. If you’re looking to invest in the blue-chip art market like Bill Gates, you can use this exclusive link to get started in just a few minutes—without needing his billions.
