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      02-23-2024, 11:50 AM   #8195
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Drives: Potato
Join Date: Feb 2012
Location: USA

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We all know that anecdotes don’t tell the whole story, and even the official measures (PPI, CPI, WPI, etc) each have their limitations and appropriate uses. Clearly inflation is impacting some sectors more than others, as is usually the case.

As others have suggested, being in a business with some pricing power is good (and it is one of the things I look for when deciding whether to buy a stock). Being in a hyper competitive business implies that you need some other advantage(s) or will be “on the table”.

On a personal level, it is possible to insulate from many inflationary effects. A fixed-rate mortgage (or no mortgage) locks in a significant portion of one’s expenses. A fuel efficient car mutes the impact of fuel price increases. And there are substitutes for nearly all consumer products - get meat from a rancher/butcher instead of a grocery, and buy a side or half-side as an example. Make coffee at home, dine out less, etc. To some extent these impact the quality of life, but not necessarily dramatically.

People and businesses do these things to varying degrees, and so are experiencing inflationary impacts on their finances differently.
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