Two Stocks I Own Specifically To Outperform During Inflation: Harris Kupperman
Sure, if you want to survive during inflation, then you should buy businesses with inflationary pricing power. But what if you want to dramatically outperform during a period of inflation?
Harris Kupperman has offered up his most recent thoughts on how to play inflation - and specifically two companies he owns because he believes they will outperform in an inflationary environment - to his blog and Fringe Finance readers.
Harris is the founder of Praetorian Capital, a hedge fund focused on using macro trends to guide stock selection. Mr. Kupperman is also the chief adventurer at Adventures in Capitalism, a website that details his investments and travels.
Harris is one of my favorite Twitter follows and I find his opinions - especially on macro and commodities - to be extremely resourceful. I’m certain my readers will find the same. I was excited when he offered up his latest thoughts to Fringe Finance.
Playing Inflation, Pt. 2
Warren Buffett famously told investors that if they wanted to prosper during periods of inflation, then they needed to buy companies with high returns on capital and pricing power. As a result, it should be no secret why a company like Coca-Cola (KO – USA) trades so richly—it’s being priced as an inflation resistant Treasury, and investors are crowding into it. As with most things related to Buffett, everyone listens, but then the critical thinking stops.
Sure, if you want to survive during inflation, then you should buy businesses with inflationary pricing power. But what if you want to dramatically outperform during a period of inflation? What do you want to own?