I've been thinking about a question recently: how should we invest in 2026 to combat inflation?

Honestly, the scariest part of inflation isn't the numbers themselves, but how it silently erodes your purchasing power. Let me give a personal example: suppose you have 1 million in the bank at the beginning of 2024. At that time, a good bowl of beef noodles costs 200 yuan, so this money could buy you 5,000 bowls. But by 2026, if the average inflation rate over these two years is 3%, and the bank interest rate is only 1.5%, it looks like your savings have grown to over 1.03 million. But here's the problem: now that bowl of noodles costs 212 yuan, so you can only buy 4,859 bowls. Invisibly, you've lost the purchasing power equivalent to 141 bowls of noodles. This is why simply saving money isn't enough—you need assets that can outpace inflation.

So, what kind of companies are considered beneficiaries of inflation? I’ve observed the market and identified a few categories worth paying attention to.

First is essential consumer goods. Retail giants like Walmart and Costco tend to see their market share grow during inflation periods because consumers look for cheaper options. Companies like Procter & Gamble and Uni-President, which own many household essential brands, also benefit because of high brand loyalty and greater pricing power. The strongest aspect of these companies is their pricing authority—they can pass costs onto consumers without fear of losing customers.

Next are financial stocks. The interest rate environment in 2026 is expected to remain high, which is good for banks. Large commercial banks like JPMorgan Chase and Bank of America will see their net interest margins naturally expand. Also, companies like Berkshire Hathaway, which hold massive insurance float, are particularly defensive in inflationary environments. These are stable choices among inflation beneficiaries.

Then there's tangible assets and commodities. Essentially, inflation is currency devaluation, so physical resources become more valuable. Energy and resource companies like ExxonMobil and Freeport-McMoRan can not only directly pass on costs but also pay stable, high dividends. As AI data centers demand more electricity and low-earth orbit satellite construction peaks in 2026, the demand for these companies will be especially strong.

Finally, there are industries with "moats" or competitive advantages. TSMC nearly monopolizes advanced manufacturing processes; Microsoft’s B2B software has extremely high stickiness; Louis Vuitton’s luxury customers are insensitive to price changes. These companies have absolute pricing power when costs rise—they can raise prices directly without affecting sales volume.

Ultimately, the key to investing in 2026 is to find companies that can smoothly pass costs onto consumers or even benefit from the rising price trend. Inflation isn't inherently scary; what's dangerous is your asset allocation lagging behind price increases. As long as you position yourself with these inflation beneficiaries, you can not only protect your assets but also seize the opportunity to grow wealth during this wave of price hikes.