A select group of our Club holdings have recently demonstrated durable pricing power to protect profits during what continues to be a high inflation environment.
For companies, elevated inflation means higher input costs — higher costs on the goods and services required to run their businesses.
In a recent note, UBS acknowledged, "Inflation may trend back toward the Fed's target sooner than expected reducing the relative advantage of companies with pricing power."
In fact, UBS believes that "companies with pricing power have the potential to outperform the broader market in the months ahead."
Microsoft's pricing power comes down to the simple fact that they have positioned themselves as a core backbone of global productivity.
Persons:
Andrew Bonfield, Jim Umpleby, we'll, Gamble, Gillette, Jon Moeller, Linde, Matthew White, White, Salesforce, Jim Cramer's, Jim Cramer, Jim, Procter & Gamble, Justin Sullivan
Organizations:
Federal Reserve, UBS, Caterpillar, Procter, Gamble, Linde, LIN, Microsoft, Construction Industries, Resource Industries, Energy, Transportation, Procter & Gamble, Health, Care, Investment, Management, Services Cloud, Cloud, Industries, CNBC, Procter &
Locations:
U.S, Australia, Canada, New Zealand, Greenbrae , California