Thursday, September 22, 2011

Inflation

Data has made the world a chaotic place. "OMG, inflation is 8% / 10% !!". If inflation numbers were never published, or even published only yearly, people's behaviour would be vastly different. Real GDP growth is, weirdly, a derivative of nominal GDP growth; therefore, official inflation numbers can swing real GDP growth rates - funnily enough, real GDP growth is often spoken of independently. 
The other effects, amongst many, of so much data bombarding us is quite possibly our growing restlessness, shortsightedness, and attention deficit. 
"Lethargy bordering on sloth remains the cornerstone of our investment style". WB said that in his 1990 BRK letter. May be, lethargy bordering on sloth needs to be the way we function during many periods of our days.

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