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As the American government continues an unsustainable path of war, spending, and money printing, investors are desperate to find a way to preserve the value of their wealth. Cryptocurrencies, precious metals, and foreign currencies clearly aren’t working because all or most of their value is based on perception, not innate worth. So, what alternatives do you have? To answers that question, ask yourself, what will humans always spend money on? If it’s something people need or will always want, the companies selling the product can simply keep increasing prices to keep pace with inflated values of currencies. Think food, energy, real estate, transportation, health care, and nowadays, tech like cell phones and internet access.

Do you want to know the stock with the highest return over the last 100 years? It’s not Nvidia, Amazon, or Microsoft. Certainly not a gold or crypto company. It’s Philip Morris, the maker of Marlboro cigarettes. Although the bulk of the company’s money has been made in tobacco, it’s also owned stakes in food companies such as Kraft and Nabisco, as well as alcohol companies like Miller and Busch. It’s no mystery–people like to smoke, drink, and eat! If you’d invested a single dollar in Philip Morris 100 years ago, through spinoffs and dividends, it would be worth $4.4 million nowadays.

Warren Buffett’s investments for Berkshire Hathaway are surprisingly simple — Coca-Cola, Chevron, Geico, Apple, Dairy Queen, Kraft Heinz, DaVita, etc…..all easy-to-understand businesses selling products that people need or always want. If we have 100 percent inflation over the next 5 years, Apple would just charge $2000 instead of $1000 for a phone. Geico would just double your annual car insurance premiums. There’s your hedge against inflation.

Investing in individual stocks is still tricky though, even for essentials. Traditionally conservative food stocks have become unpredictable due to GLP-1 drugs and input cost increases. Health care companies can be destroyed by government actions. Real estate is always tied somewhat to interest rates. Energy?…well, you know the story on that one. Despite short-term risks, you’re better off buying something you know will have innate value to people over time, rather than a hope and a prayer that some sucker will pay more for an asset than you did. And if you don’t have the expertise for individual stocks, simply buy a low-cost stock index fund, where money will keep shifting over time to the things that humans need and want the most.

Note: this all assumes you have a long-term investing horizon. If you need money in the short-run, stocks are always risky.

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