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Are Pot Stocks Back?

Jeff Siegel

Written By Jeff Siegel

Posted November 10, 2023

On Tuesday, Ohio became the 24th state to legalize the adult use of cannabis.

Those who follow the cannabis industry knew this would be the outcome. And future legalization ballot initiatives across the country will likely follow suit.

Poll after poll shows that the majority of U.S. voters approve of legalization, despite the Biden administration refusing to legalize cannabis on a federal level.

Indeed, states’ rights have proven to be effective in dismantling the prohibition of cannabis in defiance of federal law. 

Now, if you’re a regular reader of these pages, you know I’ve been following the cannabis market for nearly a decade.

In fact, I was the one who recommended buying shares of Canopy Growth Corporation (TSX: WEED), OrganiGram (NASDAQ: OGI), and Aphria (TSX: APH) back in 2015 and 2016.

Here’s how those picks turned out…




Of course, that was a long time ago, when the cannabis industry was just starting to break out. It was the best time to invest. As my publisher often boasts, here at Angel Publishing, we get to the good grass first. And nowhere is that more apparent than the mountains of cash we made in cannabis.

So it wasn’t surprising when I got so many emails about the results of Ohio’s cannabis legalization initiative, with readers wanting to know the best way to play it from an investment perspective. So here it is…

Do nothing!

I’m serious.

Yes, I’ve been bullish on cannabis for a long time, but the cannabis bull market is over.

The big money has already been made.

And while we will continue to see individual states legalize, ultimately culminating in the federal legalization of cannabis, there are just better opportunities out there to make a lot of money. 

The truth is the cannabis market was overvalued the second Canada legalized this amazing plant. And while we rode the hype, we also knew that most of those cannabis stocks were overvalued. So we squeezed as much as we could out of them and then cashed out before the industry imploded. Which was inevitable. After all, for the most part, these cannabis stocks are simply producers. They’re farmers. They grow weed.

It’s hard enough for farmers to eke out a profit, but cannabis producers have to operate under the burden of heavy regulatory control and taxation with the added weight of not being able to deduct ordinary business expenses. This is because of Section 280E of the IRS code that forbids businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of Schedule I substances, as defined by the Controlled Substances Act. 

If you don’t know, the federal government still recognizes cannabis as a Schedule I substance along with heroin and LSD. An absurd classification for cannabis, to be sure. But as long as that absurdity exists, cannabis producers will continue to exist in a world of overzealous federal overreach and incredibly tight margins.

So yes, while I’m bullish on the continued legalization efforts on a state level, until we see, at the very least, the end of 280E, investors will find any profits from cannabis stocks to be quite limited.

And this is why I’m telling you to not get caught up in the hype that was instigated by Ohio’s recent legalization of adult-use cannabis.

Instead, just focus on where you’re going to get the most bang for your buck.

Like the latest opportunity from my good friend and colleague, Keith Kohl, that allows you to profit alongside some of the richest people in the world.

Let me explain…

Due to the convergence of three powerful economic triggers, Keith believes we’re on the cusp of a multi-year bull market in oil. And he’s not the only one.

According to some intel that Keith picked up from one of his many contacts, there’s been a steady flow of smart money pouring into oil markets lately.

Take David Tepper, for instance, the billionaire hedge fund manager. He recently invested $372 million into oil and gas stocks, saying he’s an “oil stock bull right now.”

Or Steve Cohen, the billionaire “hedge fund king,” who went even bigger. He’s investing $1.1 billion into several oil companies. 

Other billionaires loading up on oil right now include…

  • Bill Gross — net worth: $2.6 billion
  • Paul Tudor Jones — net worth: $8.1 billion
  • Ray Dalio — net worth: $15.4 billion
  • George Soros — net worth: $6.7 billion
  • Carl Icahn — net worth: $6.4 billion
  • Jim Simons — net worth: $30.7 billion
  • Bruce Berkowitz — net worth: $4.3 billion

They’re all taking massive positions. But the most bullish oil investor right now is the smartest of them all…

Warren Buffett.

During an annual shareholder meeting a few years ago, Buffett said, “We will not be buying, very often, oil and gas stocks.”

But over the last 18 months, he’s done a complete 180.

Oil stocks now make up 14% of Berkshire Hathaway’s total portfolio. That’s the highest percentage since 2000.

Make no mistake: These guys didn’t become billionaires by making bad investment decisions.

That being said, I don’t expect you to just run out and buy oil and gas stocks without seeing evidence of a coming bull market. Which is why I’m including a link to this investment note that Keith just published.

It includes all his research and intel, as well as recommendations on the oil and gas stocks that’ll make you the most money in the coming weeks.

Bottom line: Unless you hate money, you need to get some of this action for yourself right now.

To a new way of life and a new generation of wealth…

Jeff Siegel Signature

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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