• Those with a fixed income suffer when the cost of living advances.
• An owner of stocks have an option to offset the loss in currency's purchasing power via advances in dividends or share price.

This chapter basically undid the messages from chapter 1. There is no standard procedure, no silver bullet or "trading-strategy". The note on the law of diminishing returns is more interesting.

All mechanical formulas for earning higher stock performance are self destructive.

• if the formula was based on flukes, then the passage of time will expose it.
• if the formula makes sense, publication of it will ensure that the gains are eroded in the future.

• The advice in chapter two around inflation is to keep the projections in account while investing.
• Assume a 3% inflation rate per annum.
• The inflation rate in india is ~5% as on 2021.

Since inflation would have effect on compounding, the effects of inflation should be harsher on younger population?