With high inflation, many investors are nervous about the market. There are some who look to the Oracle of Omaha, Warren Buffett, and Elon Musk, who disagree when it comes to investing during times of inflation.
Musk’s recent tweet recounts an important tip
Musk tweeted on the Twitter account that he is bringing things up because he has been asked by many how it is best to behave in relation to the investment portfolio in a period of inflation. According to Musk, what should be done is to purchase shares of companies that produce and sell products and services that we believe in.
Shares should only be sold if you think that the company’s products and services are losing their value, as long as this is not the case there is no reason to panic just because the market is falling and the value of the stock in question is eroding. As long as it is a company that sells valuable products and services (and as such, products and services that are in demand) even if the value of the stock goes down due to a negative atmosphere in the market, it will come back and go up. As mentioned, Musk’s tweet echoes what Warren Buffett (who is currently ranked as the sixth richest man in the world) says.
The Value Investing Strategy for Inflation
If you want to invest wisely, only purchase shares from companies where we have a business model that we understand and believe in. Buy these companies when they are undervalued to generate large profits over a long period of time. Value investors don’t follow what trends the market is doing or short-term movements because they do their own research to find these investments with intrinsic values.
Even if he doesn’t have any affiliation with the company, Elon Musk is looking at Twitter as a valuable company because they are going to make 44 million dollars in sales.
The importance of sticking to your investment strategy in an inflationary market
Musk tweeted “Don’t panic when the market does.” He was echoing one of Buffett’s quotes that says tough times in the market should be seized, especially when others are afraid. Musk tweeted to own physical things (like a house) and shares to save in tough markets. When it came down to crypto holdings, Musk said he would not sell Bitcoin, Ethereum, or Dodge.
Buffett is not sure about Crypto
Warren Buffett at Berkshire Hathaway’s shareholder meeting shared his skepticism about investing in cryptocurrencies. While Elon Musk and Buffett disagree about the potential for cryptocurrency, Musk also warned about investing too much in crypto and stressed that the real value is in building products and providing services to people, money is not one of such products.