Quantum Wealth Summary
- Inflation continues to destroy wealth on an epic scale as Auckland house prices drop over $700 a day and shares become more volatile.
- Warren Buffett has offered two ways individuals and investors can escape inflation’s most pernicious effects.
- On that note, we report on a growing local NZX business that could offer anti-inflationary characteristics. We look at this company’s outlook for further growth and income over the medium-term.
- As a bonus: we also reveal our Weekly Top 5 Quantum Trends. These are the most impactful global opportunities that we are currently watching this week.
Warren Buffett says inflation swindles almost everybody.
Whether you invest in property, shares, bonds, or put your cash under the mattress, there’s no reprieve when this silent thief comes.
It’s also clear that interest-rate tightening has a long way to go as central banks around the world suggest they’ll stay hawkish ‘until the job is done’!
Auckland house values have dropped $743 per day since January.
Shares around the world show increased volatility, with the VIX Index at heightened levels.
As with any cycle, there’s opportunity to invest now — for when this cycle turns. As it inevitably will.
While illiquid assets like property may take years to turn, shares could buck up in a shorter period.
On that note, Warren Buffet recently gave some advice on what you can do to escape inflation’s worst effects.
Warren Buffett and Charlie Munger at the 2022 Berkshire Hathaway Annual Shareholders Meeting.
Source: Yahoo Finance
At the meeting, the 91-year-old said, ‘The best thing you can do is to be exceptionally good at something’. He mentioned professions like doctors. And went on to explain that people give you what they produce in exchange for what you deliver.
Skills cannot be inflated away from you.
The next best thing he said was to invest in ‘a wonderful business’ that makes products that are in demand regardless of what the currency does.
These days, with NZD being rather weak against stronger currencies like USD and AUD, the NZX is one hunting ground we’re continuing to consider.
Today, we report on an NZX listed business that demonstrates strong ability to defend against inflation. It has the qualities of being exceptionally good in delivering a service. And has the defensive nature of an anti-inflationary business.
It’s also demonstrated steady growth.
It could be positioned to provide further growth and income. Let’s take a look…
Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.