How to Make Money in Marijuana Investing: Fleece Investors

John McDuling in Quartz: “Investing in marijuana stocks is a lot more dangerous than smoking marijuana.”

There is a ton of money to be made in the cannabis business: by fleecing investors.

There’s also a ton of money to be lost: by being one of those investors.

Legal cannabis will be a commodity, and a cheap one at that. Maybe somebody has a clever branding strategy to make money anyway, but what are the odds you’re going to pick that lucky company to invest in as opposed to the 99 others that are going to go broke when pre-tax retail prices hit $3/gm. for sinse, with concentrates trading at a discount on a per-milligram-THC basis?

This is one case where the old rule applies in spades. The sure-fire way to double your money is to fold it over and put it back in your pocket.

[Cross-posted at The Reality-Based Community]

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Mark Kleiman

Mark Kleiman is a professor of public policy at the New York University Marron Institute.