Saturday, June 28, 2014

Buffett on inflation & why you should express your earnings in Big Macs

If you (a) forego ten hamburgers to purchase an investment; (b) receive dividends which, after tax, buy two hamburgers; and (c) receive, upon sale of your holdings, after-tax proceeds that will buy eight hamburgers, then (d) you have had no real income from your investment, no matter how much it appreciated in dollars.  You may feel richer, but you won’t eat richer.

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