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Scotia Wealth Management

A great investment story doesn’t always mean a great investment

June 18, 2018

In a previous post, I promised to discuss how the lack of commitment contributes to investment under-performance, but I MUST tell you what happened this past weekend, and I will discuss commitment in an upcoming blog.

Last Saturday night, I attended a charity dinner and live auction. Unbeknownst to me, I sat at table with six real estate investors who worked together at the same company.

After the usual introductions, and a short description of our occupations, the discussion quickly turned to the stock market. Since I was the sole portfolio manager in the group, I expected to provide free investment advice while trying to outbid others, and win the right to take home a new racing bike (my own Father’s Day gift).

Well… I couldn’t have been more surprised. The group explained how they had just invested in new a start-up company that was created by the merger of a silver exploration company, and a very small marijuana company, in Oregon.

The new merged company was in the process of raising $8,000,000 by selling shares at 40 cents through a private placement offering. Ultimately, the company would list on the TSX Venture Exchange and then the S&P/TSX, within 12 months. They carefully explained how other marijuana companies started in the same fashion, and today are worth billions of dollars. Of course, they mentioned how Canada was legalizing cannabis, and Canada would soon become the Saudi Arabia of pot. It was a sure bet…

Read more…

If you would like to hear more about this story or share an investment story you’ve heard, call me or email me at richard.dri@scotiawealth.com.

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