[CutePuppy]

Interesting observation about investment into inelastic demand goods. I made a somewhat similar observation some time ago that he really invests in inflation, i.e. industries (insurance etc.) or products (See's, Coca-Cola etc.) that either benefit from or can withstand inflation much better than non-brand name products.

That also explains his reluctance to invest in high technology, an internally and externally essentially deflationary industry, aside from his explanation that he "doesn't understand it".

[bruinbirdman]

" can withstand inflation much better than non-brand name products."

Good point. My dad always said get a job in an industry that deals with something everyone needs. He is an engineer; was in natural gas.

I was in grocery distribution and warehousing.

Along those lines I always thought of toilet paper.

Commodities are a different category. While I was in food distribution, the company had an absolute rule that the buyers could not speculate on commodities, not even as a hedge. We bought finished product not raw material.

I don't see Berkshire Hathaway in speculative assets. Strictly long term investments. Hmm. It does own insurance companies.

yitbos