Canadians have lost $131 billion investing in cannabis

[Cowboy89]

Originally Posted by OldDutch

If it was predictable than I am guessing your messaging from your private island having sold prior to peek?

No, I have an investing rule - if I can’t understand how a company or asset makes economic profits I simply don’t invest or take part period. Never owned a pot stock, any $h!tcoin, or any cartoon apes or NFTs. With regards to timing, you can never predict the how and when, just the eventuality that over inflated assets will eventually always come down. I invest, I don’t speculate.

With regards to dancing on graves, I wouldn’t call myself an expert investor at all, but I am a CFA charterholder and have many years experience working in capital markets and corporate finance. When friends and acquaintances with no formal financial expertise start putting money in obvious bubbles and obnoxiously act like they’re Warren Buffet they deserve at least a ‘I told you so’ when the inevitable happens.

[Patek23]

Originally Posted by PsYcNeT

Turns out guys who knew how to set up a hydroponic loop in their basement were pretty terrible at running multi-million dollar companies.

The problem was those kind of guys who knew what they were doing were shut out. It was a lot of tomato farmers etc. who didn't know what they were doing and the product was trash compared to black market and 3x the price.

The government is learning their lesson though and slowly people are being allowed craft licenses etc. But the government roll out was terrible and basically set the legal market up to fail forcing people who didn't know what they were doing to grow and taxing the #### out of it.

[peter12]

It’s also been horribly regulated at both the provincial and federal level. An industry set up to fail.

[blankall]

Originally Posted by The Cobra

You do understand that when a stock goes up to $100k it's based on someone actually paying that much for it?

Quick question for someone who knows more about this than me. Is stock price the last sale? Some grouping of the most recent sales? Surely it would take more than one sale, as that would just lead to manipulation.

How do they actually determine the instantaneous price of a stock?

[opendoor]

Originally Posted by blankall

Quick question for someone who knows more about this than me. Is stock price the last sale? Some grouping of the most recent sales? Surely it would take more than one sale, as that would just lead to manipulation.

How do they actually determine the instantaneous price of a stock?

It's the last price traded on the open market. It could be a million shares or it could be a handful. You can't really manipulate it because if you put in a high buy order to drive the price upwards, there will be tons of sell orders that get activated and the actual transaction price will only move up a bit.

[MoneyGuy]

Originally Posted by opendoor

How much of that is just paper losses? Someone who buys $10K worth of stock, sees it go up to $100K, and then eventually sells it for $10K hasn't lost $90K.

I’d think they’re actual losses. In other words, your example shows no loss. However, if someone invests $50,000 (not a huge amount for some) and it goes up to $100,000 later dropping to $25,000 that’s a loss of $25,000. When I was an advisor I had to caution many clients about the risks of both crypto and weed stocks. When times are good everyone (not quite but making a point) wants in.

[bizaro86]

Originally Posted by Leondros

Previously I would agree with you. But all the speculation in the stock market over the past 3 years has really made me question whether at time if the market is really efficient as we think it is and is a true predictor of value. Did we ever really think GameStop was worth $20B+... It had the daily volume and prices to suggest such, but would another company or institution really pay that much for GameStop or was it more a factor of market manipulation as a result of derivatives, short positions and options trading?

Not arguing for EMT at all - I think it's flawed in a number of ways.

I'm just saying that a lot of that money is real losses - there were a lot of shares that traded hands at the highs, and now that it's way down someone held all the way down.