Cannabis stocks have been a huckster’s dream.
From one of our members, yesterday:
“All too familiar… I invested $100,000 6 years ago at the very beginning. And then the founders disappeared. $34 million went missing. It was actually a scam, not just a bad investment.”
This member, a very successful businessman, ignored Habit Number Three:
“3: BUYING THE ENTIRE U.S. MARKET IN LINE WITHIN ONE’S ASSET ALLOCATION, that is, don’t pick stocks.
The member then writes:
“Five years ago I was on a roll. 100 grand was less than 10% of my annual earnings and I considered that money that I could afford to lose. I certainly didn’t go into it thinking I would lose it. It was a respected lawyer who recommended to me and a number of other people to get into this company. She’s now under investigation with the Ontario securities commission. I was interviewed by their fraud department. She’s probably going to lose her license to practice law and have to sell her $7 million home. It’s entirely possible the $500,000 diamond ring she was wearing was paid for by suckers like me…
“I’ll never see my money back but I hope to see her do some hard time. If these hustlers and fraudsters can scam me they can scam anybody.”
The Monday Morning Millionaire Program (15.5% annual return since 2012) states that the only reliable way to beat the market legally is to dollar-cost average it correctly.
All other attempts to outperform the market legally need investors to cast aside on or more of the six habits of highly effective investors.
That approach outperforms the market sufficiently frequently to keep investors coming back but not frequently enough to equal the S&P 500 over the course of a decade.
It is exciting and safe for investors to use in a fun portfolio if they have one. A core portfolio that is based on buying and holding an exchange-traded fund that parallels the S&P 500 will outperform this approach over a market cycle. Boring and effective.