CANNAINVESTOR Magazine August 2016 - Page 26

You are making decisions about your investments in an industry with known and unknown variables that is also in a period of Ecoforming. Do not underestimate how important monitoring is as it may change your own variables (risk tolerance; sources for information, your diversification strategy, and so forth). A good chef, when the cooking is going off course, knows exactly the changes needed to ensure an excellent dish even if the final product was not the initial intention.

The above fundamental rules basic to investing apply to the Marijuana industry and back to basics is a fantastic blue print as you map out your own plan and strategy. If you monitor the industry’s sources of news then you have seen many examples of companies that have found themselves facing obstacles – some of which have proven impossible to overcome. Do not get emotional about any company or stock. Think of the industry as a vibrant Ecosystem being terraformed. Keep that analogy front and centre because that mindset allows for an even more basic truth that applies to any evolving Ecosystem or industry … Darwinism. This industry may indeed prove to a degree to be the survival of the fittest and an investor needs to be without emotion to exit positions of previous favourite picks.

In the June issue of CannaInvestor, I referenced and summarized the Consolidation Curve and if you are not familiar with that explanation of the evolution of industries, I recommend you consider doing so. This industry is changing rapidly (Ecoforming) and companies need to be dynamic and adaptive to survive. A Retail Investor also needs to be dynamic and adaptive to be successful in this industry.


When I wrote “the landscape in just five years will look nothing like it does today and will be completely unrecognizable to that of only two years ago” little did I know that there would be some major shocks in just two months.