How Does Warren Buffett: How to Make Money During Inflation Work?

Warren Buffett knows how to turn rising prices into a win, just like when you save up for that toy you really want.

Imagine you have $10 in your piggy bank, and you buy a candy bar for $1. Later, because of inflation, the candy bar costs $2. If you had kept your money in the piggy bank, it would feel like you lost something, but if you used that $10 to buy 10 candy bars at first, then later you could sell those same candy bars for $2 each and get $20! That’s how Warren Buffett makes money during inflation, he buys things when they’re cheap and sells them when they’re more expensive.

• Inflation is like a growing toy that costs more every day.
• Warren Buffett buys toys (or businesses) when prices are low, like when the candy bar was $1.
• Later, when prices go up to $2, he sells them and gets more money, just like getting double the amount from your piggy bank!

It’s a game of waiting for things to get bigger, and then selling them at their biggest. Warren Buffett knows how to turn rising prices into a win, just like when you save up for that toy you really want.

Imagine you have $10 in your piggy bank, and you buy a candy bar for $1. Later, because of inflation, the candy bar costs $2. If you had kept your money in the piggy bank, it would feel like you lost something, but if you used that $10 to buy 10 candy bars at first, then later you could sell those same candy bars for $2 each and get $20! That’s how Warren Buffett makes money during inflation, he buys things when they’re cheap and sells them when they’re more expensive.