Buffett figured that well-known consumer brands, such as Post cereals and Winston cigarettes, would be able to raise prices at a pace with inflation. He also bought hard-commodity stocks, such as Aluminum Co. of America, Cleveland-Cliffs Iron, Handy & Harman, and Kaiser Aluminum & Chemical. But as Buffett would remind his readers, neither Berkshire nor anyone had a “remedy” for the problem. Inflation was a “gigantic corporate tapeworm” that “preemptively consumes its requisite daily diet of investment dollars regardless of the health of the host organism.”
