Before You Invest in Marijuana… (Podcast)

Before You Invest in Marijuana… Podcast by Nick Hodge – Outsider Club

Publisher’s Note: There’s simply no doubt about it, marijuana investing is the single hottest market right now. We’re constantly getting questions from readers about how to invest safely in what could be the single biggest new industry since the tech boom. But you can’t just pick any old marijuana stock and hope to bank massive gains. Identifying the booms from the busts is an art form onto itself.

That’s why our resident marijuana expert Jimmy Mengel recently sat down with Alexandra Perry’s Investing After Hours podcast to share his insight. Jimmy has been investing in cannabis since 2014 and has pretty much seen it all… His readers have reaped countless double- and triple-digit gains in the sector.

Today, he’s going to walk you through:

  • The benefits of cannabis investing in Canada over America
  • His thoughts on the American cannabis market
  • A highlight on his favorite American cannabis company
  • Red flags to look for in any cannabis investment

Let’s get right to it…

To Your Wealth,

Nick Hodge Signature

Nick Hodge
Founder, Outsider Club


Alexandra Perry: Hello, everyone. This is Alexandra Perry, and you are listening to Investing After Hours. Today, Jimmy Mengel, a cannabis expert, is joining me to talk about how investors can get started with the cannabis sector. Jimmy, how are you?

Jimmy Mengel: I’m doing great. Thanks for having me.

Alexandra Perry: No problem. I think the best place to start is just you telling us about yourself and what your investing experience has been in the past.

Jimmy Mengel: I guess my first foray into investing was as a kid collecting baseball cards. I would buy all these baseball cards, and then sell them for way more than I bought them for. Eventually my father told me, “Hey, you’re pretty good at this baseball card thing. Why don’t you try it like a grownup?”

Essentially, he gave me a couple of ideas in investing in blue-chip stocks, which is a pretty easy thing to do for anyone, even a kid. What I did was I bought a couple of stocks, like Disney and General Electric, and pretty much just sat on them for 20 years, and then when it came time, if I needed to buy a car or put a down payment on a house, I always had these dividend stocks just sitting around that had compounded over the years, and just sold them to do that.

I think that’s what initially got me started, and I think it was nice to learn that when you’re young, because compound interest in stocks is probably one of the most important things you can learn. It’s that lazy set-it-and-forget-it type thing, where, for example, if you set up say a dividend reinvestment program with a large blue-chip stock, say you put $4,000 into it as a kid. By the time you retire, that’s going to be worth a million dollars. That was my philosophy: lazy investing. Buy good stocks, and go away and then forget about them.

Alexandra Perry: So you have two separate publications: The Crow’s Nest and The Marijuana Manifesto.

Jimmy Mengel: Yes. The Crow’s Nest is completely dedicated to long-term dividend stocks. Again, the set-it-and-forget-it type, where you really don’t have to worry about. Since developing The Crow’s Nest, we’ve had a lot of success with that. Over the last three years, we’ve returned 61%, 103%, and 349% on pretty safe stocks. But we have a “plundering” section in The Crow’s Nest. It’s a pirate-themed newsletter by the way, in case you were curious about the name.

Once in a while I would take a swing at one of these larger growth story stocks, and the first one I ever recommended was Canopy Growth Corp. jimmy tweed room

(TSE: WEED), which was a marijuana stock. At the time, it was trading for maybe $1.75, and I was very interested in the industry because I knew damn well that it was eventually going to be legalized, especially in Canada.

I took a trip to Ontario and visited their factory. It was in the old Hershey Chocolate factory that was closed down and moved to Mexico. What these guys did is they went into the Hershey Chocolate factory and started a marijuana grow company.

From what I understand, I was the very first newsletter writer to tour the facilities.

When I arrived, it was amazing. The CEO even had a “Mr. Wonka” placard on his door. They were really playing up this chocolate marijuana thing, which I thought was kind of kitschy, but at the same time, I saw what they were doing in growing large amounts of marijuana for legal medical use, and basically from there, I was like “this is definitely going to be the next big market.”

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Jimmy is a managing editor for Outsider Club and the Investment Director of the personal finance advisory The Crow's Nest. You may also know him as the architect behind the wildly popular finance and investing website Wealth Wire, where he's brought readers the stories behind the mainstream financial news each and every day. For more on Jimmy, check out his editor's page.