TLRY - This Is the Biggest Mistake I See Cannabis Investors Making Over and Over Again
2024-04-02 08:30:00 ET
The cannabis industry has a lot of potential upside. As new markets around the world open up and legalize cannabis for medicinal or recreational use, it can give a company with global aspirations more growth opportunities. The challenge, however, is that it can require a lot of patience from investors. Cannabis remains illegal in most parts of the world, and countries have been slow to make changes.
But some investors remain bullish on the industry's long-term prospects. And the catalyst doesn't have to be huge to get stocks moving. Last month, there was news that the German government was moving forward with marijuana legalization, which went into effect April 1. That, combined with the hopes that the U.S. might also follow suit and make serious changes, are key reasons shares of Canadian pot producers Tilray Brands (NASDAQ: TLRY) and Canopy Growth (NASDAQ: CGC) took off. Tilray's stock was up more than 40% in March, while shares of Canopy Growth soared by more than 160%.
There's considerable volatility in the cannabis industry, and that can make these types of investments incredibly risky ones to hold. A lot of the excitement is based on hopes for reform.
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This Is the Biggest Mistake I See Cannabis Investors Making Over and Over Again