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Village S!#t Investments
A recent quarterly letter from a fund I follow outlined how tough it has been since launching due to the nature of the fund's investment thesis on cannabis and the resultant naming of the fund:
Almost every bank, investment bank or brokerage has refused to send money to the fund. I cannot tell you how many investors told me that they had their wires denied due to the name on the bank account. Many Wall Street professionals have told me their employers refuse to let them personally invest. Other investors have told me they are worried to invest because they are working on refinancing loans and don’t want to jeopardize those loans. I have lost too many potential investors to simply the word “cannabis” being in the name of the fund.
The straw that broke the camel’s back was when an investor who invested two months ago told me that Schwab called recently to tell him to never send a wire again to a cannabis investment. When someone from an online brokerage is picking up the phone to call you a few months after wiring your own money, something is very wrong.
This presents those who can invest with an excellent opportunity to take positions in bombed-out valuations in an industry with immense growth prospects and numerous catalysts I’ve discussed previously. Another in my stable of what I sometimes refer to as my ‘village slut’ investments, a term Michael Burry used referring to his Avant! position:
Avant! still makes me feel I'm sleeping with the village slut. No matter how well my needs are met, I doubt I'll ever brag about it.
This is the investment realm I am comfortable in; hated investment sectors offering asymmetric returns. Over the years, I have taken sizeable positions in Bitcoin, Russia, agriculture, coal, oil and cannabis. They aren’t the investments you brag about at cocktail parties, but they have been and will continue to offer handsome returns. The stupidity our world is devolving into also arguably makes them even easier to find for those with the ability for independent thought.
It also provides me with solace to know that despite the turmoil we face, being aware of truth and reality in the world, I can benefit mentally from seeing past the bullshit and profit from it.
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