How Inflation Swindles the Equity Investor

Following on from our post last week about the concept of equity duration, it's a great time to revisit Warren Buffett's evergreen piece on inflation vs equities. The chart below shows in nominal terms the S&P 500 did okay through the 1970s, but investors lost heavily in real terms.  

Source: Bloomberg, Macrobond, Variant Perception

‍The Warren Buffett article can be found here: http://www.valueinvesting.de/warren-buffett-on-inflation/