Inflation and investing , I often revisit this quote when I am reviewing my portfolio
Inflation is a tax one has to bear irrespective of whether one is investing or not.
The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislature. The inflation tax has a fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income tax on her interest income during a period of zero inflation or pays no income taxes during years of 5 percent inflation. Either way, she is ‘taxed’ in a manner that leaves her no real income whatsoever. Any money she spends comes right out of capital. She would find outrageous a 120 percent income tax but doesn’t seem to notice that 5 percent inflation is the economic equivalent ~ Warren Buffet
I had an opportunity to visit India after almost a year and I took this opportunity to do a dip stick test on inflation
Cautionary Note : I was in Kolkata for 15 days and my experiences may be totally irrelevant and … Read the rest
