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Non-traditional funding is pouring into cannabis. The New York Times had a big story on Dec. 28: “Marijuana startups, shut out from banks, turn to private backing.” There are thousands of independent investors who formerly wanted no part of startups — because of their high risk — but are now ready and eager to back cannabis ventures. They’re often average people with discretionary capital, who are always on the look-out for something safe and lucrative. And what could be better than legal cannabis? (Grass roots financing!) Which leads me to the next point …
How do you invest when you can’t know what’s going to happen next month, or next year. New Korean war? Financial collapse? Trump? Some Black Swan event? But if you have no idea about the future, then how can you invest with any certainty? You can’t, of course, which makes cannabis so special. You KNOW where it’s heading and, no matter what happens, this will be huge. I can’t exaggerate the power of this selling point. (A little fear always helps!)
And here’s the “secret” behind any successful microcap marketing: It takes a lot of work to score a hit … requiring promotional flair and audacity … that’s far removed from the nitty-gritty of building a cannabis-related company. Again, there’s nothing accidental about a hot stock. It’s an artificial creation that can make a ton of money. It’s also a lot of fun if you like this kind of thing. And if you don’t, and let things slide? You’ll find yourself living with a sick stock and a bunch of unhappy shareholders. (No fun.) It will also be a waste of time and money.
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