When I have doubts about my investments, I always go back and ask myself these questions:
1. How's management? Is there deterioration in quality of management?
No. We can't ask for better management for Supreme.
2. How are the sales? A business needs sales to survive and then thrive
Our sales will only increase from here. Supreme now has products sold at Shoppers. There will be more dispensaries, more shops. Once the economy is reopened, these numbers will only go up. I'm seeing a pot shop every few steps. Many times I walk by shops like Nova cannabis on Queen Street West in downtown Toronto, I see a long line up.
3. How well are the products received?
We're in the business where repeat and loyal customers is very important. If they like our products, they'll spread the word to people around them. I've not read a bad review about Supreme's products.
4. Is there possibility for expansion?
Absolutely. Cannabis is not only for recreational or medical use any more. Cosmetics, beverages, pet care etc., many arenas we can venture into. I'm trying out cannabis-based skin care products and absolutely love it.
I'd prefer a slow and steady growth. I don't like to see share price propped up by hype; this is like building a sand castle; a small ripple can destroy it all. The strong and steady improvement will take this company to where it deserves to be.
But what we need is time, and time is not something we can flounder our magic wand (if we had one) and make it move faster. But if Warren Buffet can invest in stocks of companies and hold them for 20 years, 30 years, or longer, then why can't we give this company a little more time to prove itself?
In our culture, we have a very important word that we all know by heart. The word is "". It means endurance/perseverance. The top part is a the bottom part is . Literally it means being persevere is like being stabbed in your heart many times with a knife. If you can take the pain, then you can endure all the (hardship) getting in your way.