Quickly compared a investment from today to 2020

It was measured in aud$

“Oh, we’re kind of in line with back then”

I said to my wife

But then… boom. What about real inflation?

Oops

Just about the most important thing any investor can look at 

In purchasing power it’s down 

For sure 

Regardless of what government metric tells you otherwise 

Once again, I was tripped up by how counter intuitive inflation actually is

Prices going up does not mean value is increasing 

It’s in fact the denominator falling 

Most people have no idea…