Paul Volcker

Paul Volcker was the Chairman of the Federal Reserve during the early 1980s. In the 1981 Letter, Buffett applauded his efforts to curb inflation.

📉 Fighting Inflation

Volcker is credited with significantly raising interest rates to combat the high inflation of the late 1970s and early 1980s.

• The Crossbar: Volcker's high interest rates elevated the "crossbar" of passive returns (bond yields) that companies had to clear to be considered "good" businesses.

🔗 Connections

• Concept: The Crossbar, Inflation Tax
• Period: Era 3 - The Big Four & Capital Allocation (1981-2010)