How to Tell if a Cannabis Stock is Good or Bad

The basic principles underlying a successful investment strategy haven’t changed for centuries. Don’t put all your eggs in one basket (diversification), don’t let your emotions guide your decisions (market timing), a penny saved is worth two in the bush (the time value of money), always get a prenup no matter what (common sense), and never ask the barber if you need a haircut (don’t trust financial advisers) – these are all timeless principles, each of which business school professors have turned into an entire series of classes. Investing shouldn’t be that difficult. Nor should we be relegated to a man wearing a Ferragamo tie – who rode the subway into work – telling us where he thinks we ought to invest our money.

People often email us asking which cannabis stock they should invest $50 in, or which cannabis stocks are “good” or “bad.” We use this opportunity to point out what a giant convoluted mess the “cannabis industry” is in right now, especially when it comes to vetting all the selections there are for retail investors. There are so many acquisitions happening it’s impossible to keep up, everyone is lighting cash on fire, and the gubment is getting a bit antsy. (The FBI is now seeking tips on marijuana corruption.) These are all risks that need to be considered when thinking about investing in cannabis stocks. In our recent article on