#13 - NoMo Easy Money - Welcome to the Correction

In this episode we discuss the new reality of the Cannabis Market - corrected values and the end of easy money 1) The Correction -- How did we get here? - Natural transition from a hype-driven to a results-driven environment - Using real estate developments as an example (selling the sizzle vs the steak) - How the overall sales numbers are WAY off the projections ($4.6B vs $1B) 2) What is Easy Money? - Lack of due diligence; "sizzle" driven investing - Emotion driven investing style - Focus on upside instead of risk mitigation (Greed > Fear) 3) The Effects of Easy Money - Asset prices / Company Valuations start to rise rapidly - How this has happened in Real Estate since 2008 - Attracting shady players ("promotes") - Speculative behaviour of investors chasing comparable gains 4) What Next? What does this mean for investors? - Resetting values can be attractive for investors - "Cashed up" players can take advantage of this downturn through M&A - Investors need to pay closer attention to margins: gross and net - Cash and Cashflow are extremely important - Focus on companies who have a proven ability to execute and make money - How a failing company can create an investing opportunity in a winning company Bonus: Manish and Abi make a $3 Billion Dollar Bet for 2020