‘It’s not taxed at all’: Warren Buffett shared the ‘best investment’ you can make to fight inflation — how to put his advice into action

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With an estimated net worth of $117 billion, Warren Buffett, the CEO of Berkshire Hathaway, has built a tremendous financial empire.

But unlike the high-roller lifestyles of other extremely rich celebrities and business people, Warren Buffett lives by smart — and surprisingly simple — investment philosophies that have positively influenced millions of investors around the world. One of his most famous rules is to buy and hold for as long as possible.

“You’ve got to be prepared when you buy a stock to have it go down 50% or more, and be comfortable with it… but some people are not really careful. Some people are more subject to fear than others.”

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Invest in yourself

At the 2022 Berkshire Hathaway annual shareholder’s meeting, Buffet said “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.”

While this isn’t a traditional investment tip, Buffett firmly believes that by regularly investing in knowledge and self-improvement, you yourself become an asset and can more easily access opportunities for growing your wealth.

Even now, Buffett has wise investment advice for investors seeking to shield their wealth and even grow it while keeping their tax obligations low.

Here are some of his top investing strategies.

Real estate

Real estate is generally a “good investment” during times of inflation, according to Buffett.

“They’re the businesses that you buy once and then you don’t have to keep making capital investments subsequently. So, you do not face the problem of continuous reinvestments involving greater and greater dollars because of inflation,” he said during the 2015 Berkshire Hathaway shareholders meeting.

But, while real estate might be a good investment, its barrier to entry can be difficult to cross. Luckily, there are plenty of platforms out there that allow you to invest in real estate with ease.

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Stocks pricing power

Buffett has been around the block a few times, experiencing many highs and lows in the U.S. economy. He has managed a stock portfolio through periods of double-digit inflation rates in the 1970s and has plenty of insight on what to own when consumer prices spike.

Buffett likes high-quality businesses with low capital needs, such as Apple. The technology company boasts some impressive financial metrics — a testament to the company’s efficiency, strength and negotiating power — which have enabled it to thrive during this period of inflation.

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Gold

While Buffett is known for being uninterested in gold investing — describing it in a 2011 letter to shareholders as an asset “that will never produce anything” — other money mavens consider it to be a solid hedge against inflation because its purchasing power has remained relatively stable over time.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.