There is little that individuals can do to avoid inflation at the cash register, but people can make certain moves to protect against its effects. Buffett repeated his long-held advice at a 2022 Berkshire Hathaway annual shareholders meeting that one of the strongest protections against inflation is to be exceptionally good at something. People will give you what they produce in exchange for what you deliver.

Skills are inflation proof

In 2009, at the end of the Great Recession, Buffett shared similar advice when he said, “the best thing to do is invest in yourself.” Buffett also said the next best thing a person could do is invest in “a wonderful business” that makes products that are in demand regardless of the dollar's performance. He used Cola-Cola as an example of a product people will pay for regardless of inflation.

Your abilities can't be inflated away from you

<img src="https://image.cnbcfm.com/api/v1/image/106837244-1612812282690-104778034-1543867066070img_4448.jpg?v=1612812362&amp;w=60&amp;h=60&amp;ffmt=webp" alt="thumbnail" width="35" height="35"><div>Daniel Zuchnik | Contributor | Getty Images</div>Inflation is taking a toll on the American economy, with everything from <a href="https://www.cnbc.com/2022/04/13/how-much-gas-cost-every-year-since-1978.html" dir="ltr">gas</a> to <a href="https://www.cnbc.com/2022/04/12/how-much-grocery-prices-increased-as-inflation-reaches-41-year-high.html" dir="ltr">groceries</a> seeing a steep price increase.There is little that individuals can do to avoid inflation at the cash register, but Berkshire Hathaway CEO and legendary investor Warren Buffett says that people can make certain moves to protect against its effects.Speaking at the 2022 Berkshire Hathaway <a href="https://www.cnbc.com/2022/04/30/berkshire-hathaway-annual-meeting-live-updates.html" dir="ltr">annual shareholders meeting</a>, Buffett repeated his long-held advice that one of the strongest protections against inflation is sharpening your skills and working to be at the top of your field."The best thing you can do is to be exceptionally good at something," the 91-year-old said Saturday. Mentioning professions like doctors and lawyers as examples, Buffett said that "[people] are going to give you some of what they produce in exchange for what you deliver."<div>12:35</div><div>Why everyone is so obsessed with inflation</div>Buffett added that skills, unlike currency, are inflation-proof. If you have a skill that is in demand, it will remain in demand no matter what the dollar is worth."Whatever abilities you have can't be taken away from you. They can't actually be inflated away from you," he said. "The best investment by far is anything that develops yourself, and it's not taxed at all."It's similar advice to what <a href="https://www.cnbc.com/2021/07/16/warren-buffett-best-protection-against-inflation.html" dir="ltr">Buffett shared in 2009</a> at the tail end of the Great Recession, when the then-78-year-old said "the best thing to do is invest in yourself."At the time, Buffett also said the next best thing a person could do is invest in "a wonderful business" that makes products that are in demand regardless of the performance of the dollar.He used a company like Cola-Cola as an example, saying that people will still want <a href="https://www.cnbc.com/2018/02/09/heres-what-warren-buffett-likes-to-eat.html" dir="ltr">his favorite soda</a> decades from now, with inflation playing no role in their decision."It doesn't make any difference what's happened to the price level," Buffett said, because people will still pay for the products they like.

There is little that individuals can do to avoid inflation at the cash register, but Buffett says that it is possible to protect against its effects. 

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Money & Investments

Inflation is taking a toll on the American economy, with everything from <a href="https://www.cnbc.com/2022/04/13/how-much-gas-cost-every-year-since-1978.html">gas </a>to <a href="https://www.cnbc.com/2022/04/12/how-much-grocery-prices-increased-as-inflation-reaches-41-year-high.html">groceries </a>seeing a steep price increase.

There is little that individuals can do to avoid inflation at the cash register, but Berkshire Hathaway CEO and legendary investor Warren Buffett says that people can make certain moves to protect against its effects.

Speaking at the 2022 Berkshire Hathaway <a href="https://www.cnbc.com/2022/04/30/berkshire-hathaway-annual-meeting-live-updates.html">annual shareholders meeting </a>, Buffett repeated his long-held advice that one of the strongest protections against inflation is sharpening your skills and working to be at the top of your field.

"The best thing you can do is to be exceptionally good at something," the 91-year-old said Saturday. Mentioning professions like doctors and lawyers as examples, Buffett said that "[people] are going to give you some of what they produce in exchange for what you deliver."

Buffett added that skills, unlike currency, are inflation-proof. If you have a skill that is in demand, it will remain in demand no matter what the dollar is worth.

"Whatever abilities you have can't be taken away from you. They can't actually be inflated away from you," he said. "The best investment by far is anything that develops yourself, and it's not taxed at all."

It's similar advice to what <a href="https://www.cnbc.com/2021/07/16/warren-buffett-best-protection-against-inflation.html">Buffett shared in 2009 </a>at the tail end of the Great Recession, when the then-78-year-old said "the best thing to do is invest in yourself."

At the time, Buffett also said the next best thing a person could do is invest in "a wonderful business" that makes products that are in demand regardless of the performance of the dollar.

He used a company like Cola-Cola as an example, saying that people will still want <a href="https://www.cnbc.com/2018/02/09/heres-what-warren-buffett-likes-to-eat.html">his favorite soda </a>decades from now, with inflation playing no role in their decision.

"It doesn't make any difference what's happened to the price level," Buffett said, because people will still pay for the products they like.

When inflation is high, Warren Buffett says the best thing you can do is 'be exceptionally good at something'

Skills are inflation proof

Your abilities can't be inflated away from you

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