Barefoot Investor Scott Pape reveals the stocks he won’t invest in after Aussie lost everything

The Barefoot Investor has revealed the one stock he’s glad he didn’t invest in, despite his friend’s encouragement.

Scott Pape made this comment after a concerned reader wrote that he had lost a lot of money investing in medical cannabis companies.

“Do you know what’s happening with the medical cannabis companies?” Andrew wrote in a column published in the Daily Telegraph.

Andrew advertised that he had shares in cannabis retailers AC8 and CGB, but both had been delisted from the Australian stock exchange.

‘Others are only worth 1/100th of what I paid for them! Should I panic?’ he wrote.

In his response, Pape couldn’t resist some puns as he delivered a harsh downer.

“Dude, it sounds like you really smoked,” he wrote.

Pape said a few years ago it seemed like everyone was getting “high” on cannabis stocks.

Barefoot investor Scott Pape has delivered some sobering news to a medical cannabis investor

A comedian friend had even tried “super hard” to convince Pape to “take a hit” on a medical marijuana investment, but the financial guru resisted.

This is despite the fact that Pape believed there was “a huge market for medical marijuana,” as well as for regular recreational use.

He cited a study from the National Survey on Drug Use and Health that found more Americans smoked drugs every day than drank alcohol.

“Yet the reality is that traders have vastly overinflated the valuations of these start-up companies,” Pape said.

“Now the market has peaked and there are many marginal companies that are worth nothing compared to the prices investors paid for them during the boom.”

In response to Andrew’s question about whether he should be concerned, Pape told him that “the time to panic was long overdue” before all his money had gone into the pot.

Earlier this year, the Australian Securities Exchange suspended shares in pioneering medicinal cannabis producer Cann Group after an accountant reported “insufficient evidence” of future funding over the next 12 months.

Cann Group was the first company to receive a cannabis research license from the Australian Government’s Office of Drug Control in 2017.

It invested $49 million in a medicinal cannabis greenhouse on the outskirts of Mildura and employed around 40 staff.