Warren Buffett & Ray Dalio’s Firms Both Adding A Lot of Inflation Hedges Lately?

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For the last few months, the firms of Warren Buffett (Berkshire Hathaway) & Ray Dalio (Bridgewater Associates) have been changing their investment strategies towards more inflation hedges. Buffett has recently increased exposure to energy companies and even a gold miner, Barrick Gold, along with his Japanese company investments that also have mining exposure.

“It is pretty obvious that with interest rates near zero and being held stable by central banks, bonds can provide neither returns nor risk reduction,” a team led by Co-Chief Investment Officer Bob Prince wrote in the July report. This sounds like Bridgewater believes that bonds are not a good inflation hedge.

 

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