Heres how to profit in high inflation enviroment:

$Berkshire Hathaway(BRK.B)$

The INFLATION RATE this year is 5.4%. Many consumer product price has increased and reach an alarming price.

There is 2 reason for this inflation rate:

1. The central bank a.k.a. Federal Reserve is stimulating the economy post-pandemic. They printed alot od money to inject into the economy, a process known as Quantitative Easing (QE)

2. US debt has reach 28.9Trillion. They budget deficit is posing a huge risk as they are not able to payback the debt, but only able to constantly raise the debt ceiling. Keep in mind they raise more debt by issuing more bonds. One way to payback for this bonds is to print more money, which leads to inflation. 

What happens to the economy with high inflation?

-Higher inflation rate, lower market returns. In other words, lower Real Returns as ur stock returns will have to cover the inflation rate.

Warren Buffets advice?

Invest in companies with low capital investment. He said "the best business to during inflation are the business that you buy once, and then dont have to keep making capital investments subsequently." 

Therefore, he ask us to stay away from companies like railroads and utilities which will have higher operating cost during Inflationary Period but instead invest in company with low capital need such as $Apple(AAPL)$$Microsoft(MSFT)$

Bottom line:

Is Berkshire good for Inflationary enviroment?

Berkshire is a mix of all business, therefore it will thrive no matter what! Make sure to buy Berkshire! It is good value play right now.