Investment Decision Making Flowchart - Squishy Cap VenturesWhen the going gets rough, i sometimes re-work through the process that resulted in my initial investment here. What follows is an approximation of that process and the questions i believe are essential in determining where to put my money, starting from the absolute basics:
Question 1: Do i want to increase my capital?
Yes? Continue to question #2
No? Exit chart. Burn your money or give your banking passwords and cards to a homeless man.
Question 2: Do i believe that stocks are the most effective or interesting way to grow my capital at this point?
Yes? Continue to question #3
No? Exit chart. Buy gold or real estate, or start a human smuggling ring.
Question 3: Is there a sector that currently presents a greater or more compelling opportunity for growth in my capital than the cannabis sector?
Yes? Exit chart. Invest in ticker X.
No? Continue to question #4
Question 4: Am i willing to accept that there is a degree of risk and that there will be volatility in the net worth of my investment in the marijuana sector due to a plethora of factors, including but not limited to the political atmosphere south of the border, possible changes to taxation here in Canada, timing of implementation of recreationalization, shape of recreationalization etc?
Yes? Buy some shares, hang on tight, enjoy the ride.
No? Exit chart.