Let me tell you about a line I heard a few years ago: “The cannabis industry is so hot that even Warren Buffett is investing in it.”
That was the story penny stock promoters were telling back in 2014, when somebody realized that Cubic Designs, a subsidiary of Buffett’s Berkshire Hathaway, was selling its mezzanine structures to growers to allow them to maximize production space.
It was, to say the least, a bit of a stretch.
In my last column I shared some tips on investing in cannabis stocks but pointed out the need to watch out for landmines you may encounter, like fake news about Warren Buffett’s investments.
I often share Buffett’s famous quote when describing the quandary novice investors can face when they first jump into cannabis stocks. “If you’ve been playing poker for half an hour and you still don’t know who the patsy is,” the Omaha Oracle once said, “you’re the patsy.”
With a goal of helping readers avoid being patsies for cannabis opportunists, I want to offer a few tips.