The reason pot stocks will never recover
The whole marijuana industry is staring down the barrel of price compression
Friday, August 30, 2019
Marijuana stocks. At a glance, they seem like a disruption investor’s dream... After all, it’s a multi-billion-dollar market opening up after 100 years in the shadows. It’s forecast to grow at breakneck speed. And big companies are plowing huge sums of money in. However, you must look past the stock performance and into the actual business of selling marijuana. The fact is, most marijuana companies stand little chance of ever making significant profits. Sure, it’s new and exciting. But marijuana is a tough business. And it’s going to get much, much tougher as the market matures. You see, now that it’s becoming legal, there’s nothing special about marijuana. Like corn or wheat, it’s a crop. Selling marijuana was lucrative because it was illegal.
