Original Entry Date on "420 Thoughts" Page: June 2, 2011
When I first thought of the idea of my "IE420 Fund," I never imagined it would end up where it would be today so fast. What I thought would take years actually took just a few months. I started the IE420 Fund on March 28, 2011 as a way to share information as it relates to legal investments in Marijuana because as previously stated; "I do believe in the future of Marijuana." At that time, I already owned a few thousand shares of cannabis related companies thinking it would awesome if owned a total of 10,000 shares.
When I published my IE420 Fund page, I also sent out a Tweet and to my surprise, I started to get contacted by investors who had similar Marijuana interests in mind. Before I knew it, I was well beyond owning 10,000 shares as I was learning more and more about the publicly traded companies out there that had a direct involvement in Marijuana. Also, many of these companies were trading for less than a single piece of copper (one cent). So, where I was used to making investments in stocks and mutual funds that were something like $15, $35, $50, $75, etc. a share where I could only purchase 10-50 shares at a time, with some Marijuana related stocks, I could purchase 10,000 shares for less than an eighth of top shelf Medicinal Marijuana and in some cases, just for a bit more than the cost of a gram of medicine. Thus, last month in May, I revaluated
my goal and increased total "Marijuana" stock ownership to 100,000. So, from owning just a few thousand shares back at the end of March, in just TWO MONTHS, I was able to grow my retirement account to include 100,000 shares of stock (with positions in 10 companies) related to the Marijuana/Cannabis Industry.
Given I lost almost everything (like most) in my retirement account over the years, I did not purchase anything for a period of about a year. So, my payroll deductions as well as employer contributions were sitting in my "Cash Reserve" account. The year worth of "cash" was more than enough for me to obtain 100,000 shares. I started saving for retirement around 1995-6. I state this to add perspective because I have been told I am crazy by more than one person for investing in Marijuana. With 15+ years of saving for retirement, LESS THAN ONE YEAR of it is allocated to Marijuana/Cannabis stocks. To add additional perspective on how "easy" this is if you believe in the future in of Marijuana like me, let's say a top shelf eight of flowers requires a donation of $55.00. Let's say "Cannabis Company A" is listed at $.015/share. For that same $55.00 of medicine you can OWN ~3,667 shares of "Cannabis Company A" stock. Let's say "Marijuana Company B" is listed at $0.003/share. With that same $55.00 you now own ~18,333 shares of "Marijuana Company B." So, by diversifying by owning as many "different" industry companies, it was quite easy to reach 100,000 very quickly and if you don't have an "open" retirement plan, you won't break the bank if you want to own a few thousand shares on your own in a private account. So, I don't consider myself crazy for doing this, but I would be crazy if I did not given how I feel about the Marijuana industry and direction it is going. Also, if you do believe in Marijuana and its future, but happen to be in a lifestyle situation such as myself where you cannot partake in some activities, this is one activity at least where you can have potential to directly benefit YOURSELF!
The way I see it, like with all kinds of investments, with high risk comes the POTENTIAL of high reward. Thus, I am at ease and terms if all this is lost down the drain as there is high chance that can happen too. But, as I also previously stated and make very clear on my March 28, 2011 entry below;
After scanning all my current investments and seeing the thousands and thousands dollars lost over the years, I told myself; "Why not?" Fact is, many of the Marijuana stocks I was seeing were "Penny Stocks." So, I can get a a few thousand for a few hundred bucks and if even if I lost it all; "So What?" I've lost thousands more in my conservative investment areas. With the stock market going all over the place (mostly down as I write this), I just kept building up cash reserves within my 401K. So, with the mind set that spending a few thousand on these kinds of stocks won't make or break or me or my total retirement account, I figured I'd just go for it. So, about a year ago or so, I started with one company with today owning four companies related to Marijuana in my Retirement Portfolio.
Well, since I've reach 100,000 will I invest in more? As of now, I am not sure, but most likely I will just hold tight and let my Cash Reserve build up again because having hard cash should be part of your retirement portfolio too; especially in these times.
I'll be updating my IE420 Fund page just after the end of each fiscal quarter. Again, the purpose of this is provide vision on how Marijuana/Cannabis related stocks are doing and if investing directly what would be the results. Information will be very top-line with the overall fund value since I am not a Broker nor Financial Planner. I expect to see a lot of value swings over the years as my plan with these 100,000 shares is to "Buy to Hold" for many years so, big value drops won't concern me, but will be interesting to watch and document as well as value increases. If for whatever reason I must sell off a company or portion of positions, I will announce and provide an explanation.
If just finding me or reading an entry of mine for the first time, I am basically just your average next door neighbor taking on a risk that I feel is important to share because as they say; "Knowledge is Power." The more we openly discuss Marijuana in every aspect; the more society will be open to change in its overall attitude towards it. Marijuana/Cannabis benefits us in many ways. It's much more than about getting "medicated" or getting "high." Just that fact there are LEGAL "weed companies" out there trading stock should perk your attention if a supporter and believer of this great plant. These are the pioneers in what most of society would consider "legitimate" companies since they are traded. So, imagine not IF, but WHEN Marijuana becomes legal.
Want to learn more about the companies in my fund? Just click each company logo as you will be taken their direct company website page in a new window. Remember, knowlege is power...
Cheers (& Cough),
June 2, 2011 2:08PM PST