By Willem Weytjens (Guest Post)
Buffett has always said that you should find a company that has pricing power that can offer protection in an inflationary environment. What he means with this is you should find companies which can pass higher costs on to its customers. He once said that the ideal asset in an inflationary environment is a royalty on someone else’s sales.If inflation is 3%, so if prices rise 3% per year, and you get a check based on the sales, your income goes up 3% a year without doing anything. Now this is really interesting. Not that we are in an inflationary period right now (at…
***This is a preview. Please click on the post title or go to http://www.econmatters.com for full content. ****
