A Bong With Barefoot

Hi Scott,

I’ve been interested in the ‘marijuana boom’, and I’ve seen plenty of advertising from share trading companies about it. I wanted to ask your professional opinion about it and what companies might be of interest out of the many that are now out there.

Craig

Hi Craig,

Yes, the medicinal marijuana business is set to explode. Analysts are suggesting that the domestic market could be worth $6.3 billion a year (including the illegal market), and that the global market could be worth as much as billion by 2025. So it’s no wonder that people are jumping aboard the dot bong boom!

Are there any companies that I’d recommend?

No.

That’s because I have a very boring, very old-fashioned rule: I only invest in companies that make money — and none of the ASX-listed medicinal marijuana companies are making any money (in fact, most are burning cash).

Look, I have absolutely no doubt that there will be huge demand for medicinal marijuana all around the world. Yet I also have absolutely no doubt that there are literally hundreds of companies trying to meet that supply.

And that’s the (long-term) thing: growing weed isn’t that hard (heck, my old uni mate did it in his dorm room). It’s just another crop, and eventually it will become just another commodity … just with more government regulation.

Scott