Before You Buy a Weed Stock – The Problems With Marijuana Companies



Before you buy a weed stock, or tell someone else to do so, make sure you understand these fundamental risks… Richard is NOT a financial adviser, and the …

36 Comments

  1. Great video! But I have a question – what's your opinion on trading a cannabis etf in order to minimise the risk on any one company – would that not address the primary issues seen in the stocks themselves, by targeting a generalised uptick in the industry?

  2. 3-15-19 …Tilray stock shot up proving this guy to be wrong… I made $$$$ on Cronos. Look at the price of the stock from this video posting and now as proof. Lesson is do your OWN research before you take advice from someone else.

  3. Thank you for the information.

    As some of the other posts say I think that a lot of the hype is not in marijuana but more in the products you might be able to create with it, particularly beverages. For instance, Coke is potentially looking to make some sort of partnership.

    There is a lot of room for isolating certain compounds in cannabis and creating a product around that. THC and CBD are two major categories of the active products, but there are many many different variations of the molecules and they all have varying effects. There could be a wide variety of products that would have many different purposes.

    I've also been reading a decent amount about patents and I think that will be important with specific products.

    With that said, I can't say I've really done my research to the extend you have and that I need to be aware that I am making a gamble. I'm honestly probably not yet knowledgeable enough to make these decisions, but you have to start somewhere and you learn with doing. I'm not putting a lot of money, so if I lose it all I'm fine with that.

    I am pretty certain that marijuana is going to be legalized in the US and that the stocks are going to see a big boom when that happens, but at the same time you may be right that there may not be as much money in the space.

  4. Brought up some great points.

    What I would disagree with is that people will certainly switch to legal cannibas asap. No reason to go to jail when you have the option to buy legally. People didn’t continue buying moonshine after prohibition ended. Even if it costs more it’s worth it.

    Convenience will drive people to buy it rather than grow it just like most people buy coffee, herbs, and fresh fruits/veggies.

    I do think the use will increase once it becomes legal, as well. The deterrence of laws still affect a lot of people.

    I think it will start to become more widespread and used for small ailments.

    I’m guessing they have put a lot of money into figuring out how much they believe will be sold.

    I haven’t invested anything so I don’t know anything about that but I do believe those points.

  5. I have a few points based on your video, then a few questions if you don't mind.

    1. You mention growing at home. I can also grow corn at home, but space, time, and quality are an issue. It is easier to just buy it, and know what I'm getting.
    2. Look at the US prohibition on alcohol, and gambling. Alcohol is now legal, and they come down hard on illegal production. Gambling in states with legal gambling (Indiana for example), the excise police bust any illegal gambling. It is hard to have a football pool at a bar. If pot was legal and taxed, the illegal would slowly go away. The average person isn't going to risk jail or fines on something they can obtain legally.

    Now my question if you don't mind. I'm 45, and not a pot smoker. I have about $500 invested in pot stocks. 3 of the 4 companies you mentioned, and 1 other. In my line of work I make over $500 a day, so it is of very little risk to me. Would you still consider it a bad investment? I looked at it as something to buy, and just sit on. Thank you.

  6. You didn't talk about the medical side ,actually helping proven and there's a lot of sick and old people out there. Like CBD helping with seizures and medical pain.. I can tell you're not a smoker. predictions, predictions

  7. Thank you for making this video. I'm interested in investing but not very knowledgeable about it, so I find your advice extremely helpful! Warnings are just as useful as positive advice. Maybe more useful overall.

  8. Another great video. Although it was a party pooper you made some very good points. Where do you find all the research on these companies? Maybe a video on how you can research a company? Also one on explaining dividends would be great! Thanks

  9. Came over from your post on Brandon's channel! Love the content! Keep it up!
    𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 | 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝𝐬 | 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬𝐡𝐢𝐩 𝐟𝐨𝐫 𝐒𝐭𝐮𝐝𝐞𝐧𝐭𝐬 𝐂𝐡𝐚𝐧𝐧𝐞𝐥
    𝟔𝟕𝟐/𝟏𝟎𝟎𝟎 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄𝐑 𝐆𝐎𝐀𝐋

  10. Rational take on the cannabis space… You did a great job covering the risks with cannabis stocks and I think the biggest risk business-wise is commoditization. It doesn't take a genius to grow marijuana. It is a weed after all. The biggest risk stock-wise is new share issuance. All of the companies are losing money and will need to raise equity. Most banks won't lend them money, so that leaves them to issue shares and diluting the existing shareholders stake. I don't think people realize they are buying a percentage of the company when buying shares and when more are issued, they now own less but for the same price they paid. It's not free money free money. Great video!

  11. I am a big follower of the Cannabis space my main investment is on Aurora.
    I bough at 2.30 back than I though Cannabis stock are undervalue.
    According to Aurora they sound very confined they will sell everything they produce till at lease end of 2019.
    I believe their is risk in these stocks but if you compare them to the alcohol business or the tobacco business they are still undervalue.

  12. I was also about to make a video on the things you should know before starting to invest in Marijuana stocks, and you really gave me some ideas, thanks! Do you like to focus on the marijuana industry or was it just this one time?

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