- High inflationary environments are usually bad for companies because their costs tend to increase at a higher level than their products or services prices.
- This is not the case of companies that offer a product that competitors can't imitate.
- adidas is a company that offers an asymmetrical risk-reward ratio due to a series of temporary unfavorable events that affected the company.
- In my opinion, this is a better inflationary hedge than real estate or commodities. This is because this company can thrive in both inflationary and noninflationary environments.
For further details see:
Why adidas Is An Attractive Buy, Even In An Inflationary Environment