The best businesses are those “you buy once” and then no longer need to invest further capital, Mr. Buffett says. That’s one reason real estate is a good investment in periods of higher inflation. A brand is a “wonderful thing” to own in inflationary periods, he says, referencing Berkshire-owned See’s. The value of the brand rises when inflation kicks in, he says.

Utilities and railroads, which of course are major Berkshire operations, require investments that rise in cost when inflation strikes.