Aurora - The Stock Tip Everyone Knows About

Why Stock Tips Are Dangerous?

I completely understand the idea that it would be really nice to make a lot of money with little to no effort. That’s why people don’t like the boring old world of diversified investing.

There’s always chatter about the next great stock tip and instead of really getting into the fundamentals of any one company, I want to share an anecdote a friend and former colleague told me after we ran into a guy who asked us about investing in Aurora.

My Advice

If you like a stock tip and want to try and get in on something, that’s fine. However, I would seriously warn against betting the farm on one thing. Experts preach diversity for a reason – because it works.

If you’re going to make a bet on an investment, consider it to be a bet. Invest only what you are willing to potentially lose and try to never put more than 10% into one thing. Personally, I’m not against marijuana stocks, or the idea of oil and gas rebounding at some point, but instead of betting everything on one company you heard about from a friend or colleague, you could research and find an ETF or a Fund that is buying a whole bunch of these companies. That way, you still benefit from the sector if it does what you hope it might, but you also don’t lose your shirt if that one company doesn’t quite hit the home-run you’re thinking it will.