On my drive home from work I heard about an interesting alternative investing strategy that even Mark Cuban (billionaire) endorses.
“The money you save by investing in bulk will provide a better return on investment than any investment vehicle on the planet.”- Mark Cuban from NPR article
Buying in Bulk as an Investment Strategy
We can all agree that there aren’t many investments that are paying decent rates. Heck, savings rats (not mis-spelled) are at all time lows along with their money market cousins. More rats!
What can we do, but put it all in the stock market to hopefully keep up with inflation? You can forget about trying to keeping up with college inflation rates of 7%+.
Inflation is the pace car investors are trying to beat.- @ontargetcoach
Buying in bulk can unleash the current purchasing power of your dollar in anticipation of higher rates of common products.
Buying in Bulk: Smart Shopping or an Investment?
We already know buying in bulk from places like Costco and Sam’s Club will save us money on common items like bags of ice.
That’s just smart shopping, but could buying in bulk be considered an investment? Perhaps.
In the interview, economist Russ Roberts suggest buying items that will likely increase in price and that you’ll end up using like trash bags, laundry detergent, undershirts, toothpaste, etc.
Non-perishable items are best. [Random Thought: That would stink to have 50 gallons of shampoo in the basement and then go bald.]
If you already have a firm handle on your debt with an emergency fund in place AND inflation rates continue to outpace savings rates and money market funds, then buying in bulk could be a place to put some of your investments dollars.
For now, I’ll keep buying in bulk just for the cost savings and not an investment.
Though if I had an extra few hundred and came across a good deal, I might be convinced to “invest” in a socks and underwear for the next decade.
What do you think about buying in bulk as a viable alternative investment strategy?