Protect Your Wealth From Inflation by Implementing the Alpha Strategy (by John Pugsley): Concept, Implementation, and Problems RPF0084

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Many people today are concerned with the potential impact to their wealth of long-term inflation, mass inflation, and hyper inflation. Few have a plan to deal with it.

Today, I present one strategy that could be implemented which would help to protect your standard of living. It’s called The Alpha Strategy.

The Alpha Strategy is a book written by John Pugsley in about 1980. Concerned about the long-term inflation he predicted for the duration of the 1980s (he was wrong), he published the book to help people deal with it. It was on the New York Times bestseller list for 9 weeks in 1981.

I believe The Alpha Strategy is an extremely useful mental model. But it’s also fraught with challenges in the implementation phase. I prefer to keep it as a mental model and apply it in the areas I can figure out rather than use it as some sort of slavish mandate.

Enjoy!

Joshua

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3 Comments

Billy on October 23, 2014 at 10:46 pm

Back in the early 80’s my grandfather put all his money into 10 year CDs. He was getting FDIC insured rates of 18% into the early ’90s. Personally I don’t worry too much about inflation. I own real estate and index funds and I think they will keep up with inflation., still I found the thought process very interesting.

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Joshua Sheats on October 24, 2014 at 4:53 pm

Thanks, Billy. The point was primarily the thought process.

Those CD rates are amazing!

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Paul Stevens on August 17, 2016 at 3:27 pm

What I like about the Alpha Strategy is that, if you plan to buy in quantity and put aside the money, you can purchase many items at a 30% or greater discount. You can save money on quantity deals, and you can save money during sales. It’s like getting an instant 30% return on your investment, and then you don’t have to worry about that product going up in price or shortages in the future. Win/Win.

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Billy on October 23, 2014 at 10:46 pm

Back in the early 80’s my grandfather put all his money into 10 year CDs. He was getting FDIC insured rates of 18% into the early ’90s. Personally I don’t worry too much about inflation. I own real estate and index funds and I think they will keep up with inflation., still I found the thought process very interesting.

Vote for this:

- Joshua Sheats on October 24, 2014 at 4:53 pm
  
  Thanks, Billy. The point was primarily the thought process.
  
  Those CD rates are amazing!
  
  Vote for this:
  
Paul Stevens on August 17, 2016 at 3:27 pm

What I like about the Alpha Strategy is that, if you plan to buy in quantity and put aside the money, you can purchase many items at a 30% or greater discount. You can save money on quantity deals, and you can save money during sales. It’s like getting an instant 30% return on your investment, and then you don’t have to worry about that product going up in price or shortages in the future. Win/Win.

Vote for this: