A Conversation With Matt McCall
sneakers that had wheels in them? Every kid was wheeling around – that stock went up hundreds and hundreds of percent. And at the same time, I was looking at a company called True Religion that was making jeans. I said, “OK, well, that little wheel thing is not going to be around. Any shoe company can make that.” I stayed away from it. The company is now bankrupt, I believe. True Religion ended up getting bought out at 50 times whatever it IPO’d at back in the day, and people are still wearing those ugly jeans. That’s a viable trend that stayed. Today, when you look at marijuana, the valuations are astronomical. They’re not going to make sense. And if you do any type of value investing or fundamental investing, you’re going to say no to all of them. If you said no to Tilray a month and a half ago, you missed out on almost 600% profit. But marijuana is going to change the way that we do “entertainment” when we go out. For example, I love a good glass of wine. I was just in Italy for three weeks, where they drink wine all day, every day. As soon as the sun came up, I was drinking wine until I couldn’t drink any more. And the way I felt in the morning wasn’t very good. Take a hit of marijuana? I feel great in the morning. And you look at how big those industries are... Cigarette sales in the United States – $77 billion. Beer – $110 billion. Annual wine sales in the U.S. – $60 billion. They’re predicting that by 2030, you’ll have marijuana sales of $75 billion. This is a real industry. If for some reason it becomes illegal everywhere – which is not going to happen,
Porter Stansberry: Let me ask you about a couple of specific, emerging new industries. Marijuana is on the minds of a lot of folks today. I was scanning the markets last week, and I noticed this little stock – Tilray. The stock was just blowing up. But it’s valued at $10 billion currently, and it had sales last year of $20 million. And you’ll notice, there’s a whole lot of zeroes missing there on one side or the other. So, the question I have for you, Matt, is: If you get into these things early, how do you knowyou’re not a part of some crazy mania that is going to get you wiped out? MATT McCALL: That’s a great question, because there are, obviously, a lot of manias that have wiped out a lot of people. You have to take a step back and think about it just logically, Porter – is this something that you believe will be around in 5, 10, 50 years from now? There’s a difference in my mind between a fad and a trend. Back in the day, I used to look at a lot of retail, a lot of clothing, because my ex-wife was in fashion. Remember Heelys, those little
If you want to learn more about the giant emerging market in cannabis, gene editing, and the transportation stocks that Matt McCall mentioned, go to www.IPMpodcastoffer.com. You can receive a special discount to his newsletter – Matt McCall's Investment Opportunities.
74 October 2018
Made with FlippingBook Online newsletter