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Prices in the United States have been rising and are at their highest rate in more than a decade. Prices have risen for different reasons, such as the appearance of the pandemic, which caused production to stop, causing a shortage of products as well as an increase in the cost of transporting them, among several other reasons.
Officials and other financial experts say the current inflation rate is not a cause for concern because it will be transitory, but they have warned that it will be around for a few months before improving.
And although the population cannot avoid inflation and in fact they are already preparing for the adjustments that come in summer, fortunately there are two things people can do to protect themselves against it, published CNBC Make It.
The recommendations come from none other than Berkshire Hathaway CEO Warren Buffett.
In 2009 the expert shared at his annual shareholders meeting what a person can do to protect themselves from inflation, which is improve your skills and work to be at the top of your ability.
“If you are the best teacher, if you are the best surgeon, if you are the best lawyer, you will get your share of the national economic pie regardless of the value of the currency,” said the Oracle of Obama.
Which means that you have to be excellent at what you do because that way people will get their fair share no matter what is happening to the value of the dollar.
To achieve this Buffett says: “the best you can do is invest in yourself”, both in knowledge updates, education, health, etc.
The next recommended point to guard against inflation, says Buffett, is owning a piece of “a wonderful business”Because regardless of what happens to the value of the currency, the company’s product will continue to be in demand.
Buffett regularly recommends buying low-cost diversified index funds from the S&P 500: “Keep buying it through thick and thin, and especially through bad.”
Buffett has long urged investors to put their money in these funds, because the S&P 500 includes big-name companies like Apple, Coca-Cola and Google, and in this way one becomes the owner of them and their benefits.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.