Marijuana Stocks- Portfolio Weighting and Returns
As my marijuana stocks have grown, it’s been hard to keep track of what’s going on. I’ve got so many companies I can hardly keep track of what prices they are at.
This is probably a good thing for long term holding, there have been times when one of my stocks is at an all time high without me even knowing it. Usually find out from someone on twitter about it. Or even better, one of the stocks drops a lot and I don’t even know about it.
This is the current weighting of my holdings. Putting this into a pie chart has helped me realize where my core holdings are. MJN (Cronos group) has quickly crept up into my top 3 now that the stock has taken off.
This also made me realize, with the growth of the portfolio, many of my holdings have gone down to 1/0%. Do I need to worry about a company that makes up 1% of my portfolio dropping a few percent, don’t think so. Overall won’t make much difference.
My 4 biggest holdings are solid companies, yes their prices are volatile but in the long term these core holdings will be going up in value. I think FIRE could easily push up into the top 4 as well, at least I hope it does as I have a lot more invested in it vs Aphria.
Surprisingly DOJA has become my 6th largest holding. An investment of 4k has quickly turned into 20k. I’ve put about 10k more into FIRE but DOJA and FIRE are now sitting around the same value.
The below chart is showing how much I invested in each company and the current value they now sit at.The thing this doesn’t show is the time frame of the investments.
Compare OGI and DOJA, I’ve been invested in OGI for more than a year and have seen smaller returns than DOJA which I only bought in August.
I’ve put a lot of money into FIRE, haven’t seen the returns that others have made yet. Part of this is due to me buying while the stock was pretty high last year at 1.75. It then dropped to 1.05 at which point I bought the dip.
MJN just recently went from $3 to $9-10 putting into the top three for total value.
Aphria I bought a long time ago, around the same time I first bought ACB and OGI. Got into APH at $1 and bought some more at $6. Wish I had put more into Aphria back then but didn’t realize they would be a top play. Glad I at least put some money into it.
The goal with investing in some of the smaller companies is that they may see larger growth than the bigger more established companies. Most of the smaller companies are around 100-200 million market cap. If they each the 1 billion market cap it could mean 5 to 10 times return on investment.
Breaking this information out does help me visualize what is happening inside my portfolio. A little easier to see how some of the investments have done over time. I just bought into NINE, so it pretty much even right now. I didn’t show the percent return as I find it a bit misleading. With dollar cost averaging, it skews the numbers a lot.
This portfolio approach has shown that I can get growth from many companies. I know that I can’t predict which stock will be the next big one, so I’d rather own a bunch of them. If one of the mid sized companies or even the very small cap companies can one day catch up to the big players it could mean huge gains. Only putting a small amount in each of the higher risk stocks limits my own risk.
Good luck with your investments.