Tag Archives: inflation

Lessons from the Intelligent Investor Part 2: Inflation

Pile of BooksThis is part 2 of my series dedicated to the teachings from one of the best value investment books of all time, “The Intelligent Investor” by Benjamin Graham. I encourage you to pick up a copy of the book and read along. Today I’ll be discussing Inflation, a topic which Graham has dedicated chapter 2 to in his book. Graham, more than any other investor in history preached the importance of not losing money. Usually this is taken in the context of minimizing risk in a particular investment, but applies equally to the often invisible capital erosion effect of inflation. For today’s young investors, inflation often doesn’t play a part in investment decisions. While this is due in part to a lack of understanding of the mechanics, it’s also due to the fact that inflation has averaged just 1% (or thereabouts) for the recent past. Continue reading

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