Warren Buffett, Elon Musk and other business leaders have warned of inflation.
Top investors, including Bill Ackman and Paul Jones, also said prices will continue to rise.
Many of them blame inflation on aggressive federal stimulus during the pandemic.
In recent months, Warren Buffett, Elon Musk and other business leaders and investors have sounded alarm bells about inflation.
Michael Burry, Jack Dorsey and Paul Tudor Jones have also warned of an accelerated rise in house prices. Fed officials have overwhelmingly blamed the federal government after injecting trillions of dollars into the U.S. economy during the pandemic, failing to raise interest rates and postponing reduction measures.
Warren Buffett
"We're seeing very severe inflation," Buffett revealed at Berkshire Hathaway's annual shareholder meeting in May.
"Costs are going up, going up, going up," the prominent investor and Berkshire CEO said of his company's residential construction business.
Buffett has repeatedly stressed the dangers of inflation, describing it as a "giant corporate tapeworm" that eats up corporate cash and erodes real returns from investors.
Michael Bury
Bury sounded the inflation alarm as early as April 2020 and will issue a tougher warning again in February this year.
Bury, the prototype for the film The Big Short, made a name for himself for betting on the bursting of the housing bubble during the 2008 subprime mortgage crisis.
He warned that the current situation could rival the inflationary crisis in the United States in the 1970s and the hyperinflation in Germany in the 1920s.
Elon Musk
As CEO of Tesla and SpaceX, Musk has a first-hand experience of parts shortages and rising prices for microchips and other products.
"I don't know what the long-term picture will be, but in the short term we will see strong inflationary pressures," he said recently.
Jack Dorsey
The Twitter co-founder and CEO recently issued one of the worst warnings to date about price increases.
"Hyperinflation is going to change everything, it's happening." Dorsey wrote on Twitter.
Bill · Ackerman
Bill · Ackman is a hedge fund manager at the prestigious Pershing Square Capital Management firm.
Ackman has been keeping a close eye on prices because his assets include stakes in hotels, restaurants, retailers and property developers.
"Inflation is very, very serious," the investor noted in July. "You're going to see house prices skyrocket all the way — you have to have a friend who knows the CEO to buy a home."
The Pershing Square CEO added that the stimulus package has forced hotels and restaurants to raise wages to attract workers. He expects wage increases to continue.
Paul Tudor Jones
Legendary trader, founder and CIO of Tudor Investments, recently said: "The number one problem facing ordinary people and investors is inflation, which is probably the biggest threat to financial markets and society at large".
Jones predicted that inflation would be severe, urged people not to ignore the issue, and blamed the Fed's expansionary policies for fueling inflation.
Jeff Gundrak
The investor, known as the "king of bonds," thinks he should be prepared for a continued rise in prices.
"It's almost certain that we will face persistently high inflation," Gunnlak said recently. "We don't think inflation will be below 4 percent in 2022."
He said rising wage pressures and rising housing costs were key factors driving inflation further.
Carl · Icahn
The founders of Icahn & Company recently warned that rising prices could lead to a market crash.
Icahn said: "Inflation is gaining hold in a bad way." I really think the way we develop, the way we print money, and the way we get into inflation, are going to be in a crisis. ”
Lyon · Cooperman
The owner of Omega Consulting expects prices to continue to rise as workers keep asking for pay raises.
"The Fed is wrong on inflation," Cooperman said in September. "The idea that inflation is short-lived is a pipe dream. 65% of business costs are labor costs. Do you know who else in this environment pays less?"
John · Paulson
Paulson made more than $15 billion for his hedge fund by betting on the housing bubble of the first half of the century.
He warned in August that inflation could be much worse than experts had predicted.
"Our view is that the market is currently too undervalued for inflation," he said. "Inflation has far exceeded current expectations."
Paulson added that rising inflation could prompt investors to sell fixed income assets in favor of holding gold, potentially pushing up the price of gold.
David · Einhorn
The owner of Greenlight Capital recently blamed inflation on shortages caused by a lack of investment in manufacturing, shipping and other "real-world" sectors.
"Too many dollars chase too few goods and services," Einhorn said. "We have achieved structural changes in inflation."
Mario · Gaybelle
The billionaire owner of Gamco Investors recently told Insider that he believes inflation is accelerating and he expects wages to continue to rise as people keep demanding higher wages in the face of rising prices.
Gabelli highlighted the psychological impact of rising oil prices on consumers and said it could put upward pressure on wages.