Warren Buffett says Berkshire Hathaway is seeing ‘very substantial inflation’ and raising prices

MARKETS

PUBLISHED MON, MAY 3 20219:06 AM EDT | UPDATED MON, MAY 3 202111:43 AM EDT

Yun Li

@YUNLI626

 

 

KEY POINTS

·         “We are seeing very substantial inflation,” Warren Buffett said at the conglomerate’s annual shareholder meeting Saturday. “We are raising prices. People are raising prices to us and it’s being accepted.”

·         Berkshire Hathaway owns one of the nation’s largest homebuilders, Clayton Homes, along with companies such as Benjamin Moore paints and Shaw flooring.

·         Inflation has begun to accelerate recently due to multiple factors, including increasing demand and struggles with some areas of the supply chain, as well as just easier comparisons with the pace of a year ago.

 

 

Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

 

 

Warren Buffett is seeing inflation among Berkshire Hathaway’s collection of businesses as the economic recovery from the Covid pandemic kicks into high gear.

“We are seeing very substantial inflation,” the Berkshire chairman and CEO said at the conglomerate’s annual shareholder meeting Saturday. “It’s very interesting. We are raising prices. People are raising prices to us and it’s being accepted.”

“We’ve got nine homebuilders in addition to our manufacture housing and operation, which is the largest in the country. So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day they’re going up,” the legendary investor added.

Berkshire Hathaway owns one of the nation’s largest homebuilders Clayton Homes, along with companies such as Benjamin Moore paints and Shaw flooring.