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Hi Fools,

Here's a piece I wrote recently outlining why I'm avoiding marijuana and "crypto" companies, and what I'm looking for that would change my mind:

One snippet, centering on why I see low insider ownership with these sorts of companies as a red flag:

Watch for the red flags

When I see a young, fast-growing “buzzword” company with such low insider ownership right out of the gate, I assume:

1. The economics of the business are so terrible, the only way the company can raise cash is by issuing a boatload of new shares (severely diluting shareholders in the process).


2. The entrepreneurs/founders behind the company aren’t approaching the business with a long-term perspective.


3. The leaders of the business are more interested in making a quick buck than creating a lasting, sustainable business that will thrive for years to come.

Full article:

David K
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