Warren Buffett’s Thoughts on Inflation
And how to protect yourself.
At the 2021 Berkshire Hathaway Annual Shareholders Meeting, Warren Buffett was asked what he thought about esteemed economist and former secretary of the treasury Larry Summers’ remarks: “I am much more worried that we will have more inflation or that we will have a pretty dramatic fiscal monetary collision. This goes way beyond what is necessary.”
Summers also said, “This is the least responsible macroeconomic policy we’ve had in the last forty years.”
After hearing the question, Warren Buffett looked visibly surprised, his eyebrows raising up his forehead. What was more funny was the Oracle of Omaha’s response, “You’re asking me on that?”, a question quickly followed by nervous laughter.
Buffett went on to say that Larry Summers is a very smart guy and that he was posing potential consequences that were being increasingly voiced by others. He admitted that no one really knows what will happen from current fiscal policy until something does happen.
Charlie Munger put in his two cents, saying, “It is not clear at all whether Larry is right or wrong… He’s frankly the only one talking that way, which I admire by the way…People who kind of tell it the way they think it is, I like it.”
