Canadian CANNAINVESTOR Magazine April 2017 - Page 49

VIBRANT ECOSYSTEM: Considering the industry as a vibrant ecosystem facilitates a better appreciation and understanding of how events that transform the industry (Ecoforming) affects those within it and also share prices. The concept of Darwinism certainly applies as many companies will fail and new companies will come into being. Understanding “The Consolidation Curve” (Harvard Business Review: https://hbr.org/2002/12/the-consolidation-curve) and where the industry is on that curve is beneficial to the Retail Investor.

As the aforementioned Analyst from Dundee Capital Markets stated, the industry in Canada is at least three to four years ahead of any other country. We also know that the industry in the USA lags in comparison to many countries. Therefore, watching how the industries unfold in Canada and in other countries may prove beneficial to investing in the USA. In other words, resist superimposing the comforts of the domestic industry on to your investment strategy for those companies operating in foreign countries such as the USA.

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