Key Points
And that clouds the picture at present.. Inflation, the issue of the moment, is grounded in the difficulty we have in trusting each other, and the intensity with which we all tend to defend our share of any spoils..
In the 1970s, he compared inflation to what happens in a football stadium when the action on the field was especially exciting: Everyone stands up to get a better view, but this is collectively self-defeating...
To believe that economic growth can solve all social and environmental problems is to trust that the invisible hand can always repair what the unmentionable foot damages and do so before irreversible or intolerable harms occur...
One of the critical insights that built Warren Buffetts fortune was his understanding that companies with a wide economic moat (a euphemism for a huge inbuilt competitive advantage) were worth paying for. Big stakes in Coca-Cola Co. and Gillette (bought by P&G) anchored the Berkshire Hathaway portfolio for years..
Meanwhile, if consumers continue to be prepared to pay whatever the staples companies ask, its difficult to see why the Fed would cut rates, barring a banking crisis that gets much more serious..
