During the two years of the Covid-induced pandemic, it’s become more and more evident that financial stability is of paramount importance and should be a priority for everyone. The inflation and economic uncertainty that the pandemic brought meant that many people realized the need for investing and having a financial safety net during times of hardship. So, if you are starting your investing journey then you are probably wondering where to start. Worry not because Elon Musk, a leading tech billionaire, has all the answers you need.
SpaceX/Pexels | With such an impressive portfolio, it wouldn’t hurt to learn a thing or two from him
Who Is Elon Musk?
Elon Musk is known for his innovative work and outside-the-box thinking. The SpaceX founder, CEO, and Chief Engineer is an entrepreneur, investor, and a billionaire many times over. Now, SpaceX happens to be only one of his many ventures, some of which include companies like Tesla, The Boring Company, Neuralink, and OpenAI. Given Musk’s vast experience in investing, you better trust him with whatever advice he gives. So, what did Musk say about investing during inflation?
Elon Musk’s Investment Advice
The Tesla CEO shared tweets stating that during high inflation, it is better to opt for owning physical things such as a home or stocks in companies that you think are going to give good products. This is better than keeping your money in the banks as it’d continue to devalue.
Andrea Piacquadio/Pexels | Stocks are a great investment
Many people noticed how Musk’s tweet resonated with the advice that Warren Buffet, CEO OF Berkshire Hathaway, gave in 2009. Buffet also stated that the best way to protect yourself from inflation is to partly own a wonderful business.
Diving Deep Into The Investment Advice
If you’re new to this concept, let’s talk about why this advice is so crucial, especially for people who are starting to invest. So, the thing is, the value of the dollar is subject to change, depending on the situation of the world economy, global affairs, and more. When there’s inflation, your money loses its value and any transaction you make will only result in you taking a financial hit, which is why owning stocks in a stable company is far more beneficial.
Energetic.com/Pexels | The higher the inflation rate, the more quickly cash loses value
For example, if you own a part of a company like Coca-Cola or Pepsi, you will continue to benefit despite the inflation or changes in the economy and world affairs. This is because companies like these manufacture products that are in demand and are going to stay in demand even 50 years from now.
Trust us, Elon Musk surely knows what he is talking about!
