Last week I shared a list of 6 cannabis stocks I expect to profit from the legalization of recreational cannabis in California.
This week I am going to take a deeper dive into one of my favorite stocks from the list.
This is a good stock to profit from California
It's also a broad play on the US cannabis sector
Third-quarter sales were up 86% from last year
Shares just spiked into a 52-week high
I see plenty more gains ahead.
GrowGeneration (OTC:GRWG) is a US cannabis company headquartered in Denver, Colorado.
Shares are traded in US, OTC markets under the ticker symbol GRWG.
GrowGeneration owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 13 stores, which includes 9 locations in Colorado, 2 locations in California, 1 in Las Vegas and 1 location in Seattle.
In early 2017 Forbes ranked Warren Buffett as the world’s second richest man with a net worth of $72 billion.
Unlike most other billionaires on the list, Buffett didn’t get rich from owning just one company. Berkshire Hathaway Inc. (NYSE:BRK.B) functioned like a giant mutual fund, investing in many companies from different industries all across the economy. That way, if one industry or company struggled, it wouldn’t crush Berkshire’s performance.
At the core, this is a lesson in diversification. Putting all your eggs in one basket can be risky.
That is particularly true in the cannabis sector. It is a super young industry and cannabis stocks can be quite volatile.