Warren Buffett offers the "best investment" advice — accessible to anyone, anywhere, at any time

Skills are inflation-proof

Buffett says you can mitigate the impacts of inflation by focusing on continuous self-improvement and staying on top of the advancements in your chosen field.

“Whatever abilities you have can't be taken away from you. They can't be inflated away from you,” he said. “The best investment by far is anything that develops yourself, and it's not taxed at all.”

That could mean getting a degree, completing training courses, working with a mentor or simply reading more and educating yourself about different cultures, languages, innovations along with technical skills.

The 92-year-old says you don’t need to go out of your way chasing skills that don’t serve you well, especially in these tricky inflationary times. Instead, he says, you should aim to do everyday things exceptionally well. For instance, he considers strong communication as one of the most important skills in any market or industry.

“One easy way to become worth at least 50% more than you are now … is to hone your communications skills,” he explained in a previously recorded video posted on LinkedIn.

“If you can't communicate, it's like winking at a girl in the dark — nothing happens. You can have all the brainpower in the world, but you have to be able to transmit it, and the transmission is communication.”

While getting a post-secondary degree, such as an MBA, can be an option, there are other ways to deepen your career-building skills. For instance, LinkedIn Learning offers more than 14,000 courses taught by industry professionals. All courses are online and can be completed based on your timeframe. Another option is Skillshare. Through this online learning community you can take classes or learn skills related to illustration, design, photography, video as well as critical skills for freelancers. The best part is you can sign up for a free trial account to test it out.

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Other ways to hedge against inflation

For those concentrating on how to grow their nest egg, updating skills is only one method for hedging against inflation. Other tactics include diversification of investments. For those looking to broaden their investment portfolio, while protecting against inflation, here are three options, according to Buffett.

Real estate

Real estate is generally a “good investment” during times of inflation, according to Buffett.

“They’re the businesses that you buy once and then you don’t have to keep making capital investments subsequently. So, you do not face the problem of continuous reinvestments involving greater and greater dollars because of inflation,” he said during the 2015 Berkshire Hathaway shareholders meeting.

“If you built your own house 55 years ago like Charlie [Munger] did, or bought one 55 years ago like I did, it’s a one time outlay, and you get an inflationary expansion in replacement capital without having to replace yourself.”

If you want your real estate portfolio to grow beyond your home, you can invest in a residential real estate investment trust (REIT). REITs are publicly traded. They collect rent from tenants and pass that rent on to shareholders in the form of dividends.

Consider also using an online crowdfunding platform. These allow investors to pool their money together to buy property (or a share of property) as a group.

If you don’t want the pressure of making investment decisions yourself, investing apps and online platforms can help you invest in diversified real estate portfolios in ways that will seek to maximize your returns while keeping your fees low.

Blue chip stocks with pricing power

Buffett has been around the block a few times, experiencing many highs and lows in the economy. He has managed a stock portfolio through periods of double-digit inflation rates in the 1970s and has plenty of insight on what to own when consumer prices spike.

In a letter to Berkshire Hathaway shareholders in 1981, the business juggernaut highlighted two characteristics that make a business well adapted to an inflationary environment: 1) an ability to increase prices easily, and 2) an ability to take on more business without having to spend too much in order to do it.

Buffett likes high-quality businesses with low capital needs, such as Apple. The technology company boasts some impressive financial metrics — a testament to the company's efficiency, strength and negotiating power — which have enabled it to thrive during this period of inflation.

The tech giant ranks as Berkshire Hathaway’s largest stock holding at over USD$170 billion as of June 30, 2023, making up over 45% of the conglomerate’s entire portfolio.

“Our criteria for Apple was different than the other businesses we own,” Buffett said at the 2023 Berkshire Hathaway annual meeting. “It just happens to be a better business than any we own.”

For those interested in starting or expanding their equity investments portfolio, consider opening a do-it-yourself trading account. For instance, a Questrade account charges as little as $4.95 for each stock trade, while exchange-traded fund purchases are free. Investors also get access to options, currency trades as well as mutual funds. For those more interested in a helping hand, Questrade also offers actively managed investment portfolios — pre-built portfolios that make it easier to invest, using professional advice, at a much lower cost.

If, however, you're struggling just to find the money to make an investment, you may want to check out Moka. For as little as $4.99 per month, you get an account that helps you find the money to invest, by rounding up your purchases to the nearest dollar and then invesing that spare change on your behalf.

Gold

While Buffett is known for being uninterested in gold investing — describing it in a 2011 letter to shareholders as an asset “that will never produce anything” — while other money mavens consider it to be a solid hedge against inflation because its purchasing power has remained relatively stable over time.

“The worth of a dollar can be weakened by inflation, but gold provides you with an edge to combat that decrease in purchasing power,” William Bevins, CFP, CTFA, told CBS News.

One can directly invest in gold by buying it in its physical form, either as bars, coins or jewellery.

Investing apps can also help you invest in the commodity by purchasing shares of gold mining companies on the stock market. For those looking for more diverse exposure, you can also invest in gold exchange-traded funds.