Buffett Says Inflation Is A Problem For Berkshire, Which ‘Almost Everyone’s Scams’

Investors and guests arrive for Berkshire Hathaway Inc’s first in-person annual meeting since 2019 in Omaha, Nebraska, US April 29, 2022. REUTERS/Scott Morgan

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OMAHA, Neb., Apr. 30 (Reuters) – Warren Buffett said on Saturday that inflation “confuses almost everyone” and that it was “extraordinary” how much inflation had been observed in Berkshire Hathaway Inc (BRKa.N) own companies.

Inflation in the United States has soared, reaching a new 40-year high of 6.6% yoy in March, and Federal Reserve policymakers appear to be pursuing a series of aggressive rate hikes to drive prices down. read more

Buffett said he didn’t know what level inflation would be over the next month or ten years, but rising prices had an impact.

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“Inflation in our own company, it’s extraordinary how much we’ve seen,” Buffett said. “For the past two years, prices have been getting higher and higher.”

Berkshire noted cost increases in some of its businesses as it reported profits.

Geico, the auto insurer, posted an underwriting loss in the first quarter as claims rose as used vehicle and parts prices rose.

“Inflation deceives the bond investor… it deceives the person who keeps their money under their mattress, it deceives almost everyone,” Buffett said.

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Reporting by Carolina Mandl in Omaha, Nebraska, and Megan Davies in New York; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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