Legal marijuana is one of the fastest growing industries on the planet right now, and there's a good chance things will stay that way for the foreseeable future. After licensed-store sales more than tripled from $3.4 billion to $10.9 billion between 2014 and 2018, Wall Street is calling for as much as $200 billion in worldwide annual sales by the end of the next decade. If these figures prove accurate, we could be talking about a compound annual growth rate of more than 27% through 2030.
There's no doubt that cannabis stocks have the potential to deliver game-changing returns to investors. But at the same time, investors also have to realize that not all marijuana stocks are necessarily going to be winners, or be able to hold onto their premium valuations. Even if Yours Truly were given a stack of free cash, there are three pot stocks I absolutely wouldn't buy.
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