Inflation
We haven’t come to this classic by accident: the subject of inflation has been all over major magazines and newspapers recently. Warren Buffett pretty much defined the subject in his classic, 1977 article for Fortune Magazine called “How Inflation Swindles the Equity Investor”. It’s a must-read for any investor, preparation material for a number of finance programs around the world, and all-around common-sense knowledge that most people need.
Read more about Classic articles, vol. 3 – Inflation and equity prices
The first 4-5 pages in GMO’s Q3 2009 letter are entertaining for their irony, but it’s hard to disagree with Mr. Grantham’s conclusion: concentrate your portfolio in quality U.S. stocks with a global earnings mix. We’d extend that to some non-US quality stocks with diversified earnings sources, of course.
David Einhorn of Greenlight Capital is a fixture of the NY Value Investing Congress – and it’s always useful to take some time to read his thoughts.
