Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[lewdog]

Looking at finally getting some Marijuana exposure.

Horizons Medical Marijuana Life Sciences ETF seems like the best best for exposure, without having to take on an individual company in a sector that has and will have a lot of players. Canopy Growth probably tops the company list, but with it's large market cap (1.2B) but small revenue (20M), the smart investor in me says there's a risky PE ratio (near 80) to be playing with at this time. Marijuana is going to go recreational in Canada sometime in 2018 I think, so wanting to get in now.

Any of you have exposure in this sector?


http://www.marketwatch.com/story/hor...mmj-2017-06-08

[Cornstock]

Originally Posted by lewdog

Looking at finally getting some Marijuana exposure.

Horizons Medical Marijuana Life Sciences ETF seems like the best best for exposure, without having to take on an individual company in a sector that has and will have a lot of players. Canopy Growth probably tops the company list, but with it's large market cap (1.2B) but small revenue (20M), the smart investor in me says there's a risky PE ratio (near 80) to be playing with at this time. Marijuana is going to go recreational in Canada sometime in 2018 I think, so wanting to get in now.

Any of you have exposure in this sector?


http://www.marketwatch.com/story/hor...mmj-2017-06-08

Tangent question to this, I remember the local banks in areas that had marijuana industries had all kinds of logistical headaches trying to keep "green" money separate from normal money when the industries were blossoming (pun intended) to comply with federal regulations around the source of funds. I haven't followed it closely enough to see if this was ever resolved.

My question is if these restrictions pertain to equity stakes to the companies, especially in jurisdictions where marijuana is still very illegal.

Anyone have any insight to this?

[Demonpenz]

Originally Posted by Cornstock

No worries mate, VUG is the "ticker symbol" (quick abbreviation) for the name of a fund offered by vanguard.

While you're still learning the lingo I'll keep explaining things, let us know if something is unclear, there are no dumb questions when it comes to investing.

Sounds good I didn't chose the Vug Lyfe, it choose me.

[ChiliConCarnage]

Originally Posted by lewdog

Looking at finally getting some Marijuana exposure.

Horizons Medical Marijuana Life Sciences ETF seems like the best best for exposure, without having to take on an individual company in a sector that has and will have a lot of players.

I like the idea but that ETF doesnt seem to cover a lot. 60% seems to be 6 companies it (randomly?) decided to assign 10% weight too. Including Scotts Miracle Gro, which Id assume is only tangentially related to mj as a core product.

I think Id rather pick myself at those levels. Maybe look at Motif? I'm sure they have all sorts of marijuana motifs with 20-30 stocks. If you don't love any, you can create your own

[lewdog]

Originally Posted by ChiliConCarnage

I like the idea but that ETF doesnt seem to cover a lot. 60% seems to be 6 companies it (randomly?) decided to assign 10% weight too. Including Scotts Miracle Gro, which Id assume is only tangentially related to mj as a core product.

I think Id rather pick myself at those levels. Maybe look at Motif? I'm sure they have all sorts of marijuana motifs with 20-30 stocks. If you don't love any, you can create your own

If you type in Marijuana Motif, they weight Scotts Miracle Grow at 20% of their marijuana portfolio. I personally don't see much wrong with the ETF list. The idea is to cover the major players in the game, without taking a gamble on the hundreds that are out there. The ETF itself will shift it's holding as it sees fit over the years to adjust to the market.

Care to explain Motif a little more? I vaguely know the term but don't want to have to open another account to invest in them.

[ChiliConCarnage]

Originally Posted by lewdog

The ETF itself will shift it's holding as it sees fit over the years to adjust to the market.

Care to explain Motif a little more? I vaguely know the term but don't want to have to open another account to invest in them.

I've never invested with them but it seems to be a neat way to make a mini-etf that yourself or others can buy.

[Buehler445]

I would all but guarantee scotts isn't providing the fertilizer for weed unless they have seriously bamboozled some execs. There is waaaaaaay cheaper fertilizers out there. Unless Scott's is something different.

[Cornstock]

Anecdotal story. With the exception of 1 investment I've made in the past 3 years, I wish I would have only invested in S&P indexed stuff. With some of my "blow money" I've taken gambles on an oil exploration and refining etf (VDE), as well as a couple of up and coming tech stocks. The oil etf has been down basically since I've bought it. I console myself knowing that since it's a pretty high dividend paying fund and I'm reinvesting dividends, I'm improving my cost basis. And my horizon is still 30 years out, so I'm in no hurry. But I sure wish it would be performing better. As far as the tech stocks, they don't pay dividends, as they are still trying to make a profit, and they very well may be very good investments in time. Just a ways to go yet.

But I'm comparing them to the indexed funds I've bought over the same period and they are looking terrible. I pride myself with trying to keep my overall performance above that of the overall s&P. Right now overall it is pretty much exactly matched.

I know I just need to be patient. I have no intention to sell any of this stuff, as it still has great potential. I'm just complaining that it doesn't churn out 15+% every year like clockwork. Unreasonable? Yes. Still gonna complain though.

[Demonpenz]

Originally Posted by Cornstock

Anecdotal story. With the exception of 1 investment I've made in the past 3 years, I wish I would have only invested in S&P indexed stuff. With some of my "blow money" I've taken gambles on an oil exploration and refining etf (VDE), as well as a couple of up and coming tech stocks. The oil etf has been down basically since I've bought it. I console myself knowing that since it's a pretty high dividend paying fund and I'm reinvesting dividends, I'm improving my cost basis. And my horizon is still 30 years out, so I'm in no hurry. But I sure wish it would be performing better. As far as the tech stocks, they don't pay dividends, as they are still trying to make a profit, and they very well may be very good investments in time. Just a ways to go yet.

But I'm comparing them to the indexed funds I've bought over the same period and they are looking terrible. I pride myself with trying to keep my overall performance above that of the overall s&P. Right now overall it is pretty much exactly matched.

I know I just need to be patient. I have no intention to sell any of this stuff, as it still has great potential. I'm just complaining that it doesn't churn out 15+% every year like clockwork. Unreasonable? Yes. Still gonna complain though.

you have to have a balance of fun and some good investments. If all I did was the solid stuff I would be bored as ****. You are getting some entertainment checking everday like fantasy football.

[Hog's Gone Fishin]

Supposedly the next wave of huge runs is supposed to come from Artificial Intelligence. There are going to be gains that will actually make our first Trillionaires according to Mark Cuban. Think about the new computers programmed to LEARN instead of just performing programmed functions. Self driving cars ,robotics etc....

The next 3 years is the window for HUGE gains in this sector.

[Buehler445]

Originally Posted by Hog Farmer

Supposedly the next wave of huge runs is supposed to come from Artificial Intelligence. There are going to be gains that will actually make our first Trillionaires according to Mark Cuban. Think about the new computers programmed to LEARN instead of just performing programmed functions. Self driving cars ,robotics etc....

The next 3 years is the window for HUGE gains in this sector.

Self driving cars and robotics exist without AI. It's pretty much just a route with collision avoidance or a set of instructions respectively.

As with Self Driving cars I would anticipate that the lawyers will have to get out of the way before any of the good shit can happen.

Here is what is holding up the ag industry on self driving tractors. That shit is easy and they could do it right now with the technology already in the machines. But with current setups there is a screen you have to clear every day that says, "operator is responsible for collision avoidance." Problem being that if the operator isn't around for collision avoidance, who is? Well you will be relying on Technology in the tractor. Which is fine. Doesn't have to be anything spectacular there isn't a lot out in the field.

Problem is that if a tractor hits something, whatever it is, some
Douchebag kid that got drunk and passed out in a field because they listened to some shit country music song, whatever. Someone gets hurt and there is no operator all liability will fall with the manufacturer. And mother Deere won't stand for that.

Therefore the lawyers have to get out of the way first. I'd imagine it is the same with GM Ford whoever for the self driving cars. It also makes sense that it would transfer to AI too. Company makes machine that thinks independently. Damage occurs from machine. Who is there to blame? Manufacturer.

Maybe if you're looking for a stock, figure out which ones have the best lawyers.

[lewdog]

Originally Posted by Buehler445

I would all but guarantee scotts isn't providing the fertilizer for weed unless they have seriously bamboozled some execs. There is waaaaaaay cheaper fertilizers out there. Unless Scott's is something different.

You're better than this cowboy. You have to know Scotts is more than just fertilizer.

They're associated with weed due to their hydroponics research and expansion in this area. Still a small part of their company makeup but expected to get bigger.

https://www.google.com/amp/s/www.foo...racle-gro.aspx

[Buehler445]

Originally Posted by lewdog

You're better than this cowboy. You have to know Scotts is more than just fertilizer.

They're associated with weed due to their hydroponics research and expansion in this area. Still a small part of their company makeup but expected to get bigger.

https://www.google.com/amp/s/www.foo...racle-gro.aspx

I'm a shit cowboy. Corn doesn't break down fences or charge your ass.

Only thing I've known Scott's for is yard shit. I didn't even think about hydroponics. Shows how much I know about weed. I'd learn if Kansas legalized it though. I need to sell something that is worth some ****ing money.

[Hog's Gone Fishin]

Self driving cars and robotics exist without AI as of now but over the next 3 years they are going to be enabled to learn, thats where the next wave is supposedly taking place.

[Buehler445]

Originally Posted by Hog Farmer

Self driving cars and robotics exist without AI as of now but over the next 3 years they are going to be enabled to learn, thats where the next wave is supposedly taking place.

Limiting manufacturer liability will still be the main impediment to getting this stuff to market.