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Perhaps you missed "a house you live in (not rent)" I agree with the idea renting a home would be similar to a farm. The whole thing is you have to generate an

Perhaps you missed "a house you live in (not rent)" I agree with the idea renting a home would be similar to a farm. The whole thing is you have to generate an income from the asset. Stocks are, as you mentioned, kind of similar - but IMO not precisely the same. Often companies have expenses that also inflate, so it's more similar to gold or holding something static. When you own the means of production it's a tad different. Personally, I'd consider stocks somewhere in-between. Better than gold, less good than production your own. However, owning a farm or means of production does come with more risk.

gruez 6y ago
>Perhaps you missed "a house you live in (not rent)" It's not giving you cash every month, but it's saving you from having to pay rent, which is effectively the same thing. This is what imputed rent is. >Stocks are, as you mentioned, kind of similar - but IMO not precisely the same. Often companies have expenses that also inflate, so it's more similar to gold or holding something static. and farms don't? You need to buy fuel, fertilizer/feed, equipment, all of which inflate. There's also the opportunity cost of your labor, which also inflates. There also exists a much simpler way to see the equivalence between the two: what's the difference between owning a farm, and owning a share in a corporation that operates a farm?
imtringued 6y ago
What you are missing is that a farm is an amazing hedge against hyperinflation because hyperinflation is generally what happens when there is a shortage of food and the government keeps issuing money that exceeds the production capacity of the nation, namely to import food from other nations. Since you are producing your own food you obviously get something to eat before anyone else and you only have to sell your surplus. The only problem with owning a farm as a hedge against hyperinflation is the government may be highly corrupt and repossess all farms and thus cause a food shortage that way. Something you won't own during a crisis may not be a good hedge after all.

gruez 6y ago

>Perhaps you missed "a house you live in (not rent)" It's not giving you cash every month, but it's saving you from having to pay rent, which is effectively the same thing. This is what imputed rent is. >Stocks are, as you mentioned, kind of similar - but IMO not precisely the same. Often companies have expenses that also inflate, so it's more similar to gold or holding something static. and farms don't? You need to buy fuel, fertilizer/feed, equipment, all of which inflate. There's also the opportunity cost of your labor, which also inflates. There also exists a much simpler way to see the equivalence between the two: what's the difference between owning a farm, and owning a share in a corporation that operates a farm?

imtringued 6y ago

What you are missing is that a farm is an amazing hedge against hyperinflation because hyperinflation is generally what happens when there is a shortage of food and the government keeps issuing money that exceeds the production capacity of the nation, namely to import food from other nations. Since you are producing your own food you obviously get something to eat before anyone else and you only have to sell your surplus. The only problem with owning a farm as a hedge against hyperinflation is the government may be highly corrupt and repossess all farms and thus cause a food shortage that way. Something you won't own during a crisis may not be a good hedge after all.