The ultimate inflation hedge

The community has spoken: from now on, the newsletter will arrive on Sundays. As a reminder, the idea is simple: read it, and then head over to our Telegram channel to share your thoughts with the community so we can all enjoy a little social moment we deserve!

Before we delve into the main topic, one of the themes dominating my feeds last week was a proposal to halt the development of OpenAI for six months to ensure the technology is safe. Many believe that this is an attempt by Google and Facebook to catch up with the progress OpenAI has made. If you want to know my thoughts on the safety and regulation of AI, check out this tweetstorm I published. Give it a like, and share (or comment if you disagree!).

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Today, I’m in a mood of taking a little break from crypto, but still in the realm of investing, and smart money decissions. I want to discuss the best and least-discussed way to protect yourself from inflation. (Which in Estonia slowed from whopping 25% to “only” 17.5%. Ouch.) Can you guess what it is? Did I pique your interest? Stay with me.

When it comes to hedging inflation, we typically consider different types of assets like stocks, real estate, gold, or Bitcoin. While these work in the long term, what about the short term? There is a method that works 100% and has the lowest possible risk profile: buying items you use in bulk and storing them for the future. It’s that simple!

What’s beautiful about this strategy is that it provides you with a wholesale price advantage on top of 100% protection from inflation and supply shortages. If you have a house with available storage space, here’s what you can do:

1. Make a list of items you use daily.

2. Look for sales and places where you can buy items at bulk prices.

3. Purchase as much as you can store without the risk of reaching the expiration date.

What types of items am I referring to? Recall the beginning of COVID when toilet paper vanished from stores? Toilet paper is a perfect example. It doesn’t expire! Other examples include toothpaste, laundry detergent, dishwashing liquid, soap, shampoo, conditioner, body wash, garbage bags, cleaning supplies, disinfectant wipes, aluminum foil, plastic wrap, baking soda, bottled water, light bulbs, batteries, paper towels, tissues, sanitary pads, tampons, diapers, baby wipes, socks, candles, and alcohol.

Then, of course, there’s food with long shelf lives: vinegar, canned goods, dry pasta, rice, oatmeal, beans, lentils, pickles, jams, sugar, salt, coffee, spices, tea bags, and dog food.

Lastly, consider long-term subscriptions. I won’t even shill Legendary Badgers this time, but services like TradingView or ProtonMail offer significant discounts for plans longer than one year. I always opt for the longest possible.

I don’t know about you, but this covers a lot of spending in my household over a year, and I don’t even have kids. Did this list inspire you? Create your own.

This is the ultimate way to hedge inflation that works 100% for the items you store. We all enjoy discussing markets, but what’s better than buying agricultural stocks? Buing an actual food! No contango, no management fees, no taxes—just pure profit with a wholesale discount on top.

Some people may find this approach boring, while others have embraced the full-prepper mentality for years. Which group do you belong to?