Billionaire Warren Buffett is joining the long list of executives saying serious levels of inflation are starting to take hold as the U.S. economy roars back from the COVID-19 downturn.
"We are seeing substantial inflation," Buffett said at the Berkshire Hathaway annual shareholder meeting broadcast exclusively by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."
Buffett called out much higher steel costs impacting Berkshire's housing and furniture businesses.
"People have money in their pocket, and they pay higher prices... it's almost a buying frenzy," Buffett said, noting that the economy is "red hot."
The Oracle of Omaha isn't alone in battling inflation at the moment from everything to higher steel prices to runaway copper prices.
The number of mentions of "inflation" during first quarter earnings calls this month have tripled year-over-year, the biggest jump dating back to 2004, according to fresh research from Bank of America strategist Savita Subramanian. Raw materials, transportation, and labor were cited as the main drivers of inflation.
Subramanian's research found that the number of inflation mentions has historically led the consumer price index by a quarter, with 52% correlation. In other words, Subramanian thinks investors could see a "robust" rebound in inflation in coming months in the wake of the latest round of C-suite commentary.
"Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (Consumer/Industrials/Materials, etc.) citing inflation pressures," Subramanian notes.
The world's biggest companies are taking action, just like Buffett at Berkshire.
Proctor & Gamble said recently it would begin to hike prices on baby care, feminine care and adult incontinence products in the United States. Price increases will range from mid- to high-single digit percentages. The hikes will go into effect in mid-September.
Whirlpool CFO Jim Peters recently told Yahoo Finance Live the appliance maker just jacked up prices by 5% to 12% to counteract rising steel costs.
Kleenex maker Kimberly-Clark said it will increase prices in the U.S. and Canada on the majority of its consumer products due to "significant" commodity cost inflation. The percentage increases will range from mid- to high-single digits and go into effect in June.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn
【Now新聞台】被稱為股神的美國著名投資者巴菲特稱，美國經濟出乎他意料強勁復甦，並承認減持蘋果公司股份可能是一個錯誤。
現年90歲的巴郡主席巴菲特和97歲的巴郡副主席芒格出席巴郡舉行的網上股東周年大會，兩人回答了近四個小時股東的提問。
巴菲特指，通過聯儲局的貨幣刺激措施和國會的財政刺激措施，美國經濟已經以一種非常有效的方式復甦，同時看到顯著的通脹壓力；而美國經濟表現遠比他在疫情初期預期的好，亦令他的投資旗艦巴郡受惠。
巴郡季度業績轉虧為盈，截至三月底的第一季度，賺117億1100萬美元，去年同期虧損逾497億；公司手頭現金1454億美元，較去年底多出5.2%。
巴菲特在會上承認，去年出售部分蘋果公司股票可能是個錯誤。芒格亦表示認同，指巴郡現時對蘋果的持股大約5.3%，已經是很高的市場水平，持有的市值遠超其他股票。巴菲特稱，不覺得蘋果估值瘋狂，讚蘋果行政總裁庫克是出色的管理人員。
巴菲特亦評論特殊目的收購公司SPAC的收購熱潮，指SPAC是拿別人的錢去賭博。他說，巴郡一直物色收購目標，目前手上有700億至800億美元資金，很想拿去利用，但在SPAC熱潮下，這錢很難花出去，因為巴郡在收購交易上，很難與SPAC 公司競爭，SPAC在競購方面會出更高的價格，而SPAC通常由上市到完成購併，要在兩年內完成。
巴菲特稱，若果用槍指著他的頭，要他在兩年內作出大收購，他雖然能夠做到，但相信不一定是好的投資。他認為，華爾街對SPAC的瘋狂追捧不會永遠延續。
至於比特幣，巴菲特拒絕評價。芒格則表示，比特幣是憑空捏造出來的金融產品，不喜歡這種虛擬貨幣綁架現有的貨幣系統；又指加密貨幣的發展令人作嘔，而且違背了文明利益。
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