Saham News
Bank Stocks Under Pressure from Foreign Selling-Risk or Buying Opportunity?
/index.php
Edukasi - Posted on 06 April 2026 Reading time 5 minutes
Warren Buffett is widely regarded as a role model for investors around the world. The renowned investor, whose wealth reaches Rp1,791.73 trillion, consistently shares insights and effective strategies for managing finances.
As the leader of Berkshire Hathaway, he believes that one of his core principles can serve as strong protection against inflationary pressure.
During Berkshire Hathaway’s annual shareholders meeting last year, Buffett stated that the best thing one can do is to become highly skilled in a particular field.
He emphasized that the impact of inflation can be reduced by continuously improving oneself and remaining at the forefront of one’s chosen area of expertise.
According to him, any skill a person possesses cannot be taken away or diminished. As quoted by Yahoo Finance on Wednesday (April 5, 2026), he also said that the best investment is anything that enhances personal development and is not subject to taxation.
This may include pursuing higher education, completing training programs, working with a mentor, or expanding knowledge through reading and learning about different cultures, languages, and innovations.
At the age of 92, Buffett stressed that there is no need to chase skills that are not beneficial, especially during periods of high inflation. Instead, he advised focusing on performing everyday activities exceptionally well, including mastering communication skills, which he considers essential.
He even stated in a video posted on LinkedIn that improving communication skills could increase one’s value by at least 50% compared to current levels.
Buffett also illustrated that without communication skills, intelligence cannot be conveyed—likening it to winking at someone in the dark, where nothing happens. According to him, intellectual ability must be effectively transmitted through communication.
However, surviving inflation requires more than just strong communication skills. After investing in self-development, individuals may also consider other popular inflation hedges.
Real Estate
Buffett considers real estate to be a solid investment during inflationary periods. He explained that it is a one-time purchase that typically does not require continuous capital investment afterward.
He gave the example of homes built decades ago, which required only an initial expense but continue to benefit from inflation-driven increases in replacement value without additional reinvestment.
Pricing Power in Stocks
Buffett has experienced multiple economic crises in the United States, including periods of double-digit inflation in the 1970s. His experience managing portfolios during such times gives him strong insight into what works during rising consumer prices.
In a 1981 letter to Berkshire Hathaway shareholders, he highlighted two key characteristics of businesses that perform well during inflation: the ability to raise prices easily and the ability to expand operations without significant additional costs.
Buffett favors high-quality companies with low capital requirements, such as Apple (AAPL). Apple demonstrates strong financial performance, efficiency, and pricing power, enabling it to thrive during inflationary periods.
Gold
Buffett is known for his lack of enthusiasm toward gold as an investment. In his 2011 shareholder letter, he described it as an asset that does not produce value.
However, other financial experts consider gold to be an effective hedge against inflation because its purchasing power tends to remain relatively stable over time.
Berkshire Hathaway even held around 21 million shares of gold mining company Barrick Gold several years ago.
Financial advisor William Bevins noted that while the value of the dollar may decline due to inflation, gold can help preserve purchasing power.
Individuals can invest in gold directly by purchasing physical forms such as bars, coins, or jewelry. Additionally, investment apps allow people to gain exposure to gold by buying shares of gold mining companies in the stock market.
Source: cnbcindonesia.com
What do you think about this topic? Tell us what you think. Don't forget to follow Digivestasi's Instagram, TikTok, Youtube accounts to keep you updated with the latest information about economics, finance, digital technology and digital asset investment.
DISCLAIMER
All information contained on our website is summarized from reliable sources and published in good faith and for the purpose of providing general information only. Any action taken by readers on information from this site is their own responsibility.