Legendary investor Warren Buffett said on Saturday that he is seeing rising input costs in several different parts of his business empire, leaving many wondering how this will affect the stock market.
The “Oracle of Omaha” said during Berkshire Hathaway’s annual meeting that he is seeing “very substantial inflation” and his companies are raising prices.
Berkshire joins many other companies, such as Clorox, to say they are hiking prices due in part to rising input costs. Commodity prices, from lumber to corn to palladium, have surged in recent months.
The rise in inflation is not completely unexpected, as Federal Reserve officials have warned of a spike in prices as the U.S. economy reopens.
Many Wall Street firms have already built lists or model portfolios for investors to consider when preparing for inflation.