Legendary Investor: "Be Unafraid To Be First"

Written by James Dines
Posted July 27, 2018 at 8:00PM

Publisher's Note: We're fortunate enough to have access to the legendary Mr. James Dines and his renowned research. Mr. Dines is "The Original Pot Bug" and took a bold stance early on, leading to massive gains for the readers of The Dines Letter.

What follows is practically required reading for investors. The Outsider Club is hosting a live event next week for anyone interested in the marijuana sector.

As Mr. Dines will show you, that should be everyone.

To your wealth,

Nick Hodge Signature

Nick Hodge
Publisher, Outsider Club

The Latin noun insula, meaning “island,” describes a small body of land entirely surrounded by water. A “peninsula,” from the Latin words paene (“almost”) and insula (“island”), is an island linked to the mainland.

It is probably true for many people worldwide that they believe in some way that their area — or country — is some kind of island, or peninsula. That could in a way be likened to blinders on a horse, restricting its vision to reduce distractions from its driver’s direction.

One of our key values is to be unafraid to be first, to print the truth whether unpopular or not, in the hope that those who were endarkened would become enlightened.

Daring to locate new growth areas that timid Security Analysts are slow to recommend, due to the Low State of Hyperneeding To Be Liked, has provided us with the greatest opportunities of profitable investments.

Pot stocks are just one of the many successes that we have had by doing just that. Pot is yet another example of something viewed negatively in America, but not in some other nations, for example, Canada and Uruguay. The Caribbean is also known worldwide as a place to obtain marijuana because it is so easily grown in those tropical climates. Sales of marijuana are actually expanding to Europe, from Austria to Italy and Germany!

We challenge anyone to discover this information prominently in the mass media these days.

Marijuana is also gaining favor in Africa where, last year, Lesotho became the first nation on that continent to issue a license for medical marijuana. Then, Zimbabwe legalized cannabis production for both medical and scientific purposes.

We’ve rarely seen such insularity in America’s mass media, but sneak mentions have begun, and we have detected them.

The biggest deterrent for us was that cannabis is federally illegal in the United States. But we strive to unemotionally report and predict, and our close study of the public’s trends unmasked that its acceptability was in an uptrend!

Like a cat patiently watching outside a mouse hole, your editor pondered year after year as more Americans favored marijuana’s legalization. We also studied America’s history of Prohibition that had outlawed alcoholic beverages, and concluded that cannabis’ legality was likewise inevitable, whether we approved of it or not.

Despite cannabis being classified in the same legal category as hard drugs such as heroin, we dared to conclude that marijuana would soon be legalized, due to the aforementioned entrenched uptrend in its acceptance.

Meanwhile, many financial institutions even now continue to shun investing in pot — brokers won’t even accept customers’ requests to buy pot stocks — a situation right up our alley!

It took guts, as we dared not only to recommend cannabis investments, but definitively in-their-faces pronounced ourselves “The Original Pot Bug.” We did not recommend its use, and are not here to convince anybody of its propriety, pro or con.

Instead, we just stuck to predictions of what would happen that might be useful so we could decide on the investing opportunities.

Nonetheless, this offended some people, but it was not lost on us that Canada had already leaped ahead of America, and was even selling it internationally!

So we recommended some Canadian pot stocks. We lamented that America has an insular pattern of not thoughtfully supporting certain industries. We grind our teeth at the resulting lost job opportunities for American workers. At least some of us worldwide might have been inspired to influence their own governments.

The first crack appeared as some American states allowed “medical marijuana,” followed by the legalization of non-medical pot in states like Colorado, Washington and Oregon. The neurotic result is a Federal government that remains negative, but states positive. America needs to strengthen its corpus callosum!

Finally, a majority of American states now allow medical use, and nine states (plus DC) already allow recreational use of marijuana. The legal pot industry is expected to bring in $11 billion this year, with hundreds of millions of dollars in new tax revenue to individual states, ensuring that politicians would bitterly resist efforts to stop their pot sales.

Moreover, decriminalization would further help balance government budgets by reducing expenses due to the emptying prisons of non-violent pot offenders with petty convictions. Even President Trump is now in support of the marijuana industry in states where it is legal!

Another example of the change in public opinion is John Boehner, the prominent Ohio Republican who was a respected Speaker of the House of Representatives. In 1999, he voted against medical marijuana in the District of Columbia and, as recently as 2011, Mr Boehner said he was “unalterably opposed” to legalization. However, Boehner recently announced he would join the board of a pot company to benefit veterans with posttraumatic stress disorder!

Finally, Chuck Schumer, the Senate’s top Democrat, plans to introduce a bill taking marijuana off the Federal list of controlled substances, a big step toward decriminalizing its use!

Cowards who decline to recommend pot stocks, only because there is no absolute legal certainty, might be left behind. We instead recommend that those portfolios able to accept the risks involved, consider maintaining a position in this group. We predict this field is going to be settled as a matter of state’s rights, and that opposition to marijuana will eventually go up in smoke.

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Investing in Marijuana Without Getting Burned