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What’s up, everyone? I hope your weekend is going well!
Today we’re going to talk about how to invest your money during periods of high inflation!
Right now, inflation is at a record high. As of March 2021, it was 8.5%. It hasn’t been that high since the 80’s!
I’m no financial advisor, but here are some things that can help you fight inflation…
T.I.P.S.
Treasury Inflation-Protected Securities = buying a bond from the US gov’t and receiving a 7, 8, or 9% return
This is a good place to put some of your cash because after only one year of investing, the money has liquidity.
Real Assets
Buy something that produces real income. Investing in real estate or businesses is great because you can always change the price. For example, if inflation goes up, you can easily raise rent.
Gold
It’s a stable investment, but you need to remember that it just sits there. There’s no cash flow; you just sit on it. Lincoln said in his video…
“I have a bit of gold in my portfolio, but I personally prefer bitcoin; that’s just me.”
Warren Buffett advised us to invest in these 3 things…
1. “Invest in businesses with the ability to increase prices without consumer backlash”
Remember that it’s difficult to raise prices on consumer goods and remain in the game. If you’re the only one raising prices, you’ll get replaced.
“In contrast, B2B businesses tend to do a lot better in high inflationary environments.”
Lincoln Archibald
For example, Investment Fund Secrets uses certain software companies to help the company perform…
If the software company raised prices, IFS would tend to pay a slightly higher price rather than switching to a different company.
2. “Invest in businesses with the ability to increase growth margins quickly”
Simply put: Invest in growth companies.
3. “Invest in your ability to increase your earning power”
So, invest in yourself! Get an education, an MBA, or learn a new skill. Learn how to start a fund!
That’s it for today!
See you soon,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
