Why stock & flow matters?

In inflationary periods people stock up because they fear the loss of purchasing power. The problem with this is that at some point you run out of your supplies and you need to replenish them. How do you fix that? Well you need "flow."

From an investment perspective you may buy a bunch of gold, for example. Then store it in your local government owned bank. Kidding, don't do that. You store it in your safe or some such secure facility. That gold is great. It is "stock." You'd use it when you need it, but as soon as you begin using it… well, you have less of it. The next step therefore is to have "flow. For this you'd buy gold mining companies because they represent flow. And we mean producers not some Canadian Venture Exchange listing.

So "stock" is sort of your foundation, if you will. It's the stuff you hoard and will typically represent most anything absolutely critical that we need: diesel, propane gas, food, medicine, ammunition, copies of Insider — that sort of thing.