Warren Buffett’s investment writings frequently connect operating reality with investor behavior, and one of his most concise observations appears in Berkshire Hathaway’s (BRK.B) (BRK.A) 1983 annual report, in the appendix on goodwill: “During inflation, Goodwill is the gift that keeps giving.”
The remark was made as part of a broader technical discussion that separated accounting treatment from economic substance, using plain-language examples to show why certain businesses can protect, and even expand, owner value when general price levels rise. Rather than a slogan, the line functioned as a policy explainer for how Berkshire evaluates businesses whose primary advantages are intangible, such as brand reputation, distribution power, or regulatory franchises — advantages that can translate into pricing power without commensurate increases in capital employed.
