If you’ve been thinking about selling you shares of Trulieve, I want you to consider these three things…
Two different investors can experience completely different realities by owning the same stock. For example, right now, you could have a triple-digit return on Trulieve Cannabis Corp. (OTC: TCNNF) – or be sitting on a loss.
Here’s how that’s possible.
On March 16, 2020, TCNNF traded for $6.20 per share. Now that it’s trading at around $29 per share, that’s a 367% return.
However, for folks who bought TCNNF on March 16, 2021 at $52.78 per share, they have lost 45% of their original investment.
So, you can see why some cannabis investors are ecstatic with their returns from Trulieve, while others are questioning if it’s time to sell and move on.
And, on October 1, Trulieve became the largest cannabis company in North America after closing its record-breaking $2.1 billion acquisition of Harvest Health and Recreation.
With the assets it gained from Harvest, Trulieve now operates in 11 states including Arizona, Connecticut, Massachusetts, Maryland, Pennsylvania, and West Virginia…
15 additional dispensaries in Arizona, 4 in California, 3 in Maryland and nine in Pennsylvania…
And that’s all on top of its 50% market share in Florida, which is projected to become the second-largest legal market in the country based on medical sales alone.
When recreational sales kick off, hopefully in the next year or two, every other multistate operators (MSO) will need to watch out – because Trulieve is positioned to be the biggest player in one of the biggest cannabis markets in the United States.
While we’re specifically talking about Trulieve today, these three rules could be used for any investment that you make.
You can watch my Fall Watchlist episode (I talk about Trulieve at the 7:40 mark) to see why I think there’s still such an incredible opportunity in owning this stock, but if you’re still debating whether to sell, I want you to ask yourself these three questions to help create a decision-making framework for yourself.
Question to Ask Yourself No. 1: Does it make sense to sell your investment?
We all know that cannabis legalization is a question of “when” and not “if.” And by dominating Florida and taking its successful business model cross-country, Trulieve has earned itself a spot in every investor’s portfolio.
It’s also worth noting that since the closing of its Harvest acquisition, Trulieve’s stock price has been on the upswing.
So, if you still believe in the cannabis market and agree that it’s smart to own an industry leader for the long term, ask yourself if it makes sense to sell your shares of Trulieve.
Question to Ask Yourself No. 2: Do you need to sell the stock in order to access money right now?
There may be an instance where you need access to money to pay for a bill or an unexpected emergency. Life happens.
But if you’re thinking of selling just to sell and don’t have a plan for what you’re going to do with the money, make sure you are not letting your emotions direct your investing decisions.
Yes, it’s difficult to sit on a loss, but if you do believe in the company in the long term and don’t need access to the money right away, it does not make sense to sell.
It’s why most people are never successful at investing: because they buy high and sell low.
That’s the best way to lose money.
Investing can feel like a roller coaster with the ups and downs, but those who get off the ride early won’t be around to reap the rewards.
Question to Ask Yourself No. 3: Do you think you can find a better investment opportunity?
Sometimes an investment won’t work out, and it’s better to take a loss and move that money into a new opportunity. But before you do that, you need to identify what a better opportunity might be.
If it doesn’t seem like there is one out there, then it’s better to sit tight as long as you believe in the long-term potential of the current company you hold.
Again, it’s rough to look at a loss on paper, but remember that if you truly believe in a company like Trulieve for the long term, then you don’t want to make any rash decisions that you could end up regretting down the road.
This is the largest cannabis company in the country that we’re talking about. You’re going to want to stick around.
But before I go – if you’re looking for a new profit play, consider investing in one of Michael Robinson’s three under-the-radar cryptocurrencies that he thinks could 2X, 3X or even 4X your money by mid-2022. Read more here.
To your investing success,
Executive Director, National Institute for Cannabis Investors
4 responses to “3 Things to Consider Before Selling Any Investment”
September 29 2021