The Green Organic Dutchman

by JDH on June 2, 2018

I had an informative chat with an investment advisor this week.  I asked them if the big mutual fund company they represent has a cannabis mutual fund.  They said no, because a lot of the fund managers are taking a “wait and see” approach on marijuana stocks at the moment.  Apparently they are worried that the stocks have increased a lot, and there is the potential for the bubble to burst.  They also believe there is more supply than demand until it becomes legal, and they don’t know what the demand will be.


The ignorance of the “professionals” in Canada is astounding.

Ask those same geniuses what they think of real estate, and they’ll say “it’s great, lots of demand, great investment!”  No sign of a bubble there, eh?

What about steel?  President Trump just slapped tariffs on Canada; I assume the investment professionals told everyone to sell their industrial stocks earlier this week?

Yeah, right.

Here’s what you need to know:

Marijuana is real.  People in Canada, and around the world, have been using it for years.  Decades.  Probably centuries.

It is already quasi-legal in Canada.  There are companies based in British Columbia that will ship it to you by mail.  Or, ask a high school kid, they can get it for you.

The government has deduced that if they make it legal, they can tax it, and make a lot of money off it, and that’s exactly what they plan to do.  That’s how you know it will become legal this summer.

So you, as an investor, have a choice: sit on the sidelines and wait to see if if happens, or get it now.

I don’t use the stuff, but I started investing over a year ago.  A bought in to a private placement in The Green Organic Dutchman.  I participated in a second round, and in May they did an IPO at $3.65.  (Symbol in Toronto: TGOD).  It traded slightly higher after the IPO, then faded to $3.65, but as the initial investors in the IPO cashed out, the demand increased, and on Friday it traded as high as $6.60.

So, you can sit around and wait, or you can take some risk and jump in.

My plan is to liquidate most of my holdings in the summer, after it is legal.

And that, my friends, is why you don’t let the mutual fund geniuses make your decisions for you.

Thanks for reading, see you next week.