I am still following my strategy of balancing my portfolio with stocks from companies that earn most of their revenue in Canada, the US, and Latin America. And also have different business models. So is is balanced by region and business model. My long term cannabis stocks strategy is described on other pages of this site (see Investing in Cannabis Stocks); I will be updating it soon, after gaining more experience in the months after it was first published.
(I am not suggesting that anyone invest in these stocks,or any stocks or anything else, just showing how I am currently the strategy revealed on other pages of this site). And for the record, long term in the context of cannabis stocks means six months to one year for me; the industry goes through big changes every three or four months.)
My Long Term Cannabis Stocks Strategy
The rest of my portfolio is in a few smaller holdings, 5-10% each, of sub-sectors like oil extractor Halo Labs (AGEEF) in California and Nevada, Blueberries (Colombian grower/extractor that will export), and Flowr Corp (ultra-premium pot in Canada, on OTC as FLWPF). These are also from various regions and sub-sector). If any of them do what I tell them to do, I will gradually add on and reduce other holdings that don’t follow orders.
I’ve got Orgnanigram for Canada (cannabis sales); Charlotte’s Web and Elexinol for the US (CBD hemp oil), though Elexinol also works Europe and soon, Australia; and Khiron for South America (also expanding to Mexico, Europe, US). These make up 60% of my portfolio. Note that each of these except Charlotte’s Web has international exposure, especially in Europe. These core holding maximum the potential of my long term cannabis stocks strategy.
Why No US MSO Dispensary Stocks in My Portfolio?
I already doubled my February bet on Cresco Labs and got out weeks ago. Also did great with Trulieve (unlock scheduled for late July unless insiders agree to extend.) Will get back in at the right price, as I expect them to run up a lot by January, and skyrocket if the US passes any kind of significant pro-pot legislation, which I don’t see as likely until the end of the year. These are the kinds of US stocks to be holding when the federal laws do change in a big way.
I have a watch list of other stocks that might be worth a shot, such as Valens Groworks, currently Canada’s biggest extractor specialist, and guess what? I’m 30% cash at the moment but biding my time.
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