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1.
This is the most fundamental and basic tenet of investing. Your plan and your strategy all start here.
2.
This is very closely aligned to the first tenet.
Takes into several factors such as the time horizon for when you require the money all the way to how well you sleep at night knowing the invested money is at risk. You know your risk tolerance from your own real life experiences.
3.
This industry’s cumulative valuation projections are continuously being revised upwards. On July 21, 2016, a “Money Show” article highlighted the “World’s Fastest- Growing Global Industry: Cannabis”. (http://www.moneyshow.com/articles/guru-44944/medical-marijuana-making-global-waves/)
4.
Is the management team headed by inexperienced entrepreneurs or proven management with an impressive résumé or a combination of the two? Who is on the Board of Directors? Is there an Advisory Board? Did you look up the history of those on the management team?
Research by both traditional and Untraditional means isChallenging due to a lack of historical data and where this data past performance may not be an indicator of future performance. You should:
- Investigate news and press releases;
- Search for any relevant information that
may be affect your investment decisions
(Financial Statements, etc);
- Fundamental and Technical Analysis;
- Political and Regulatory landscape;
- Attend Expos and participate in
conference calls and webinars;
- Attend annual meetings if possible;
- Survey and follow bulletin boards and
social media as this includes creating a
list of what and who to avoid.