"The best protection against inflation is your own earning power" · Transcript

WarrenThe best protection against inflation is your own earning power. If you're the best teacher, if you're the best surgeon, if you're the best lawyer, whatever it may be, you will command a given part of other people's production of goods and services, no matter what the currency is, whether it's sea shells or rights marks or dollars. So your own earning power is the best by far. If you're the best journalist, whatever it may be, you will get your share of the national economic pie, regardless of the value of whatever the currency may be is measured against some earlier standard. The second best projection is a wonderful business. If you own the Coca-Cola trademark company, you will get a given portion of people's labor 20 years from now and 50 years from now for your product, and it doesn't make any difference what's happened to the price level generally, because people will give up three minutes of labor, five. minutes of labor, whatever it may be, to enjoy, you know, a 12 ounces of a, you know, of a product they like. And so those are the, and those are the great assets, your own earning power first, and then the earning power of a wonderful business that does not require heavy capital investment. That requires heavy capital investment, you get killed in inflation. And with those guidelines, I would tell you the best thing to do is invest in yourself.