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Tom Nash
Tom Nash

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Inflation Proof Stock #1/30

Hey Patreons,

I have been warning you of the likelihood of inflation (not hyperinflation) for the past year and in this post I want to suggest a way for you to prepare properly for it.

Historically, sectors like energy, infrastructure, real estate and banking tend to perform best during inflationary times. In this post I want to share with you a stock which relies on all these sectors and would do well in inflationary times, while benefiting from a reopening and economic growth scenario.

The stock is Birkshire hathway BRK.B (class B shares) - Class A and B are identical besides Class A not ever splitting for historical purposes.  

 First, nobody is shorting this stock, 0.04% of short interest, nobody is betting against it now for obvious reasons. 

The company does 63% EBITDA and 42% Net Income. Which is the perfect setup for inflation. 

P/E GAAP ratio is just 6.5, EV to Sales is 2.6 and EV to EBITDA is 15, which means this is not an overvalued investment, YET, but I think it will soon be, with an annual revenue of 43 billion and over 100B in cash I see Warren going and buying more of the inflation proof companies in the next 6 months. 

I suggest putting at least 5% of your portfolio in Birkshire for the next year while we ride out inflation. 

I will be bringing more inflation proof investment ideas in the next few days. 


DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security.  Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.




Comments

Is it still a buy at 300?

MΓ‘rcio Fernandes

Bravo sir... make sure you're taking the fabled 'profit'.

Ben Fennell

I have been thinking about parking my cash about 5% into $BRK.

Steven Canela

Correct spelling is Berkshire..

Konstantin Konstantinov

I'd be interested in a deeper dive on birkshire as they seem to be the perfect low effort value play...

Bottlefish

Thank you for your input and opinion. I completely agree with what you are saying. The only doubt I have is what we gonna see first: 20% rally or correction? I see many reasons why it should correct, but only see two (greed and money printing) why it should rally. But I have a little experience and limited knowledge so hence I am following Tom:)

Henrikas Danielius

Would this be a good moment to buy it? Considering its very close to its highs.....

Federico

Mate - get your money working for you man. 60% cash....put into something that gives you yield. 60% cash is hurting you. The trap I have fallen into is that you think market will crash - say its at 100 today. It keeps rallying to say, 120. Then it crashes...to 105....you know what? you would have been better off to buy and hold at 100 then lose returns by holding cash.

Sulla

That was the fist stock I ever bought and never sold it LOL πŸ˜†πŸ˜‚πŸ˜…

IVAN I LOPEZ

Hi Tom, I'm looking for such a play nowadays since I've been exposed to growth stocks and crypto excessively and, as you can imagine, not having best days of my short investment life. 😊 But, when I look at the graph of BRK-B zoomed out, it seems like it has had the best performing 12-months of its lifetime recently. I find it a bit scary to jump on since it has already massively increased in last one year (from $175 to $290) and it didn't have a considerable pull back in 2021, like many others did. Do you think it makes sense to wait for a pull back?

NCK

In this environment would you rather keep cash aside or buy inflation proof stocks? I am 20%stocks, 20%crypto, 60%cash.thx

Henrikas Danielius

I got birkshire last year at its lowest...should have bought more!

Daniel Tappman


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