There are certain types of companies that tend to perform well in an inflationary environment. They include companies that sell essentials which consumers need to buy under any circumstances. The energy sector typically outperforms during these periods since demand doesn't change too much, and prices rise.

Ironically, they can also include luxury goods companies, which target affluent customers who don't feel the pinch of inflation as much as others.

If any other companies do well when there's inflation, it's a good indication that the company is well-run and has enough brand power to charge prices customers are willing to pay. Airbnb (NASDAQ: ABNB) falls into this category, and there's one reason buying its stock could be a genius move.

Continue reading

Source Fool.com