Warren Buffett’s first rule of investing is “never lose money”. His second rule of investing is “never forget Rule No. 1”. If you suddenly come into £50,000, you might think the only sure way to abide by Buffett’s first rule is to stash your cash in the bank. But you would be sadly mistaken.
Inflation is a quiet thief, but it will gradually erode your savings. Even if inflation were to sit at around 2% (the Bank of England’s target), it would only take 35 years for the value of your nest egg to halve – not great news if you’re planning to stash it away for use in retirement.
