IMCV - How We Invest In Inflation

• Inflation will benefit some companies, be indifferent to others, and hurt the rest. To understand what separates winners from losers, we need to understand the physics of how inflation flows through a company’s income statement and balance sheet.
• The rate of change of inflation matters even more than absolute rate of inflation. If inflation remains predictable, even at a higher level, then businesses will plan for and price it into their products.
• We are die-hard value investors looking for high-quality companies that are significantly undervalued and run by great management.

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