http://online.wsj.com/article/SB120881517227532621.html?mod=googlenews_wsj

"Load up the pantry," says Manu Daftary, one of Wall Street's top investors and the manager of the Quaker Strategic Growth mutual fund. "I think prices are going higher. People are too complacent. They think it isn't going to happen here. But I don't know how the food companies can absorb higher costs."

I like his angle. Don't buy the food because of a panic over shortages, buy it as a cost-savings measure. He predicts the cost of food will increase ~4.5%, so by buying now you'll save money later. It a better investment than keeping it in a savings account (~2.5% return, if you are lucky).

Time for another trip to Sam's Club.

-Blast

The 4.5% return on stocking up on food is tax free and the 2.5% return from the bank is taxable, so the after-tax spread is larger than the 2% difference.

Justmeagain,

Very good point!

Hmmm, I wonder if I can convince DW we should stockpile Maker's Mark Whiskey...

-Blast

Blast (and other interested parties),

Tell your DW that it's for "medicinal purposes" because of it's "disinfectant abilities". There's #1 "reason".

Tell your DW that it has great "barter value" because of it's "drinkability and disinfectant abilities which would allow you to trade for something that is very needed,,,like disposable diapers and baby wipes for DD2*. There's #2 "reason".

(*note: this "reason" expires at the time DD2 graduates into panties after being successfully potty trained)

I am all grumpy because my wife made me buy 50 kg of rice. Silly me.

Reason #3 - a shelf life of 15+/- years assuming kept in a constantly cool place (temp under 70), away from direct light, and Blast is not told where said stock pile is kept.

I am just finishing a book titled 'The Alpha Strategy' written back in the early 80's. The author's emphasis is on purchasing items (durable goods) you will use for many years in bulk - including some wines and hard alcohol because they will last for years. When you open a bottle some years down the road - you have saved yourself the difference of the current price less than the price you paid several years ago. Plus buying in bulk often gets you an additional discount above the price paid at the time for a single bottle. His general belief is that inflation will always out-pace interest earned and investment gain (after taxes on the interest and gain) in the long term. His breakdown of real economics is unique, but hard to refute.

The book is available online for free pdf download or copies can be found at Amazon.com for under $5.00 including shipping.

Search under: Alpha Strategy John Pugsley

You'll find the link to the pdf download near the top of the search.

Some basic stockpiling makes good sense - especially if you are going to use it anyway! Just stay away from trendy items like roller-disco pants, Milli Vanilli hair extensions, and Oprah's Books Of The Month.

Those of us who went through the recession of the 70's will be familiar with all of these strategies. It seems weird to think that in hard times you spend, but that's the way it works. 'Might as well buy it now (as best you can) because it will cost more later. The advice is presented in a little more sophisticated way this time, but it's deja vu all over again.

As for me, with little storage space and cash, every time I go to the grocery, I also throw in one "staple" (5# flour or sugar, a package of rice, beans or salt) and a couple of extra cans of whatever veggie or soup is on sale. It's surprising how quickly it builds up with little effort or at-the-time cash layout.

The government is sending us an "economic stimulus" check soon. What better way to spend it than to forgo the "made somewhere else" electronic toy, and invest it in American grown food?

"The government is sending us an "economic stimulus" check soon."

I thought they were all being sent to the oil companies.

Sue

They are,,,,and to the big agriculture corporations......in a round about way!!!!!!