Originally Posted by Chuckanut
I first read about this tactic years ago in the book "The Only Investment Guide You'll Ever Need" by Andrew Tobias. I think the author must have been a BogleHead even if they had not yet been invented. He noted that a famous multi-millionaire (back when a million dollars was worth something) got a better return on his mouthwash - which he bought by the case to get a big discount - than on his investment portfolio! As mentioned above, the discount return was also tax-free!!
I actually learned about this form of saving from my dad back in the late 60's/early '70s when inflation was "raging" at 3%! His other reason for "hoarding" was that he had survived (and I mean that in the literal sense) the depression. While saved money in the depression actually appreciated, no one he knew had any of it. So, anyone with food was a "king". He looked at his little "grocery store" cabinet as a savings account AND a life-line.
Later in the '70s, I heard this savings method codified by a guy named Howard Ruff. Sure didn't buy into everything he suggested, but I liked the idea of having at least one other "game" to play when it came to cash management.
I like the idea of buying the Forever Stamps as well. I've done that each time a price hike is announced.
Nords, I know that our inflation is nowhere near what it was back in 1982, but my personal inflation has been running pretty hot lately. Combine that with the lack of "inflation" of assets and it makes one think creatively about how to deal with these issues.
Also, I like to have a little more control over "things". I can't control when Discover or ING will (again) lower their interest rates, but I can control and manage what I purchase to a large extent. Items I know to be vulnerable to inflation, I tend to stock up on. YMMV.