Buy this book at Amazon.com or try Amazon.co.uk in England, Amazon.ca in Canada, Amazon.de in Germany, Amazon.fr in France, Amazon.it in Italy, Amazon.es in Spain. ASIN=0471177504, Category: Investment, Language: E, cover: PB, pages: 313, year: 1997(1994).
Review © (2004) by interesting-books-selector.com
"Even if tax rates were 90 percent, [Buffett] says, there would be some real return
for owners [of a positive business] if inflation rate were zero.
[...] At a 32 percent tax bracket, with inflation at 8 percent, companies earning 12 percent
on equity return zero to their owners. Traditional wisdom for years assumed that
stocks were the perfect hedge against inflation."
--quote p58 (my copy has ASIN=0471132985) [ed note: owners being the shareholders of a company.]
Buffett also explains why passing on cost of inflation to customers won't help; see more details in the review of earlier edition.
Even with interest rates still very low in 2004, inflation is picking up and an 8% inflation rate is not an unrealistic forecast for a few years from today; guess we could even look out above. How many companies earn more than 12% on equity?
If you are a serious investor, I'd recommend to read this book twice, because it really matters!
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