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Take it from me, don’t get burned by weed stocks

Published on May 10, 2024 by David Wylie

Weed stocks have been on a high over news of a historic shift in the US over cannabis.

Here’s some free advice for bright-eyed and bushy-tailed would-be weed investors: be wary of cannabis stocks.

They shoot up in the good times (like now), but they crash much faster.

If you can’t help yourself but to invest, at least get in early and get out quick; otherwise, accept the risk of being the sucker who bought at the apex and ended up on the ocean floor, weighed down by a bunch of worthless paper.

How do I know this?

Hello, my name is David, and I’m a cannabis stocks investor.

Slots are better than weed stocks

Cannabis stocks have been my worst gamble—if we’re being honest, I’ve had the same success with slot machines.

I really only have myself to blame for investing in poorly run companies that overpromised and underdelivered. The signs were clearly there and yet I still walked the financial plank into shark-infested waters.

As a journalist, I’ve reported on my fair share of bad judgment calls made by terrible executives—both incompetent and greedy ones—since way back to the beginning of legalization. I’ve watched a lot of companies rise; and I’ve watched almost as many of them fall. In many cases, the writing was on the wall really early on.

Thankfully, as a reporter I can’t afford to invest very much, so my weed-stock losses weren’t high enough to hurt too badly.

A lot of people lost a lot more.

I only have one weed stock left

Recently, I unloaded almost all my cannabis stocks, all at a loss of over 95%. I sold them because I didn’t want to look at all those bloody red numbers anymore.

Honestly, dumping them was a relief.

Maybe the silver lining is that investing in weed stocks was a good lesson (in what not to do) for a first-time investor like me; I’d like to think I’m wiser now.

Meanwhile, I continue to rationalize my losses by telling myself that part of the reason I bought cannabis stocks was for the investor intel.

After my own personal weed stock dump, I now only hold one cannabis investment.

Perhaps, it’s sentimental to have just one in a more reliable portfolio.

The investment is HMMJ, which is an exchange-traded fund (ETF) containing a stable of weed stocks. As of this writing, it’s only plummeted 69.420% on me since I bought it. That makes it my best performing cannabis investment!