Marijuana Stocks

The legalization marijuana in Canada certainly has created a lot of buzz in the investment community. Is everybody really making money? Is it too late to get in? Well, we’ve seen tremendous growth in the last 4 months. The four largest marijuana stocks are up anywhere from 200% - 400%. But remember, for every buyer there is a seller so only half of investors are making money. Recent commentary from QV Investors Inc. (a sub-advisor for a couple of IA segregated funds) suggests that the growth in the 4 largest marijuana stocks is not based on the fundamentals. Please click here for their comments. In their commentary, they compare Molson Coors, with market cap of $18B and revenues of $13B, to the 4 largest marijuana companies. The 4 companies combined have market cap is $17.9B but their combined revenues are only $148M. Sound like the tech bubble? Avoid the smoke screen, and stay true to the five habits of successful investors: 1. Time not timing 2. Maintaining discipline 3. Portfolio diversification 4. Regularly rebalance 5. Invest regularly Take care, Scott Edgington Director of Wealth Qualified Financial Services