Wednesday, November 14, 2018

From the very beginning

This is where I take notes as I learn about investing online. I needed a place to gather all my resources.

It all started when the price of corn and soybeans shrank to nearly unsustainable levels. The yield on corn continues to grow, creating a glut in the market, just like the oil industry.

But how many kernels could possibly fit on a corn cob? With only one corn cob per plant, and only about 410 acres, there's a tangible limit to how much can be produced.

So we're considering Industrial Hemp as an alternative. It's legal now in Illinois, but hemp has been suppressed by federal regulations for so long that no local infrastructure is in place for storage, processing and selling of hemp products.

The U.S. Federal Farm Bill has wording that could legalize hemp nationwide very soon. We will need to spend a massive amount of money on facilities and equipment.

Most people are skeptical about hemp as  a viable crop here, so if we aren't going to grow it for a few years yet, I figured I might as well start investing in existing hemp and cannabis industries elsewhere since so many states are making medicinal and recreational marijuana legal.

I had a long-dormant online trading account that's nearly empty, so I bought 4000 shares of Hemp, inc. at $0.24 a share, leaving my account with about $30.

Using Google Finance I found a huge list of hemp-related stocks. I started to get a sick feeling that I was going to miss out on a huge explosion of the hemp industry, like I missed out when I didn't have any money to buy Bitcoin when it was under a dollar.

I could have been a multimillionaire almost overnight back then. I know next to nothing about value investing so I'm learning as much as I can, as fast as I can. The hemp market can't grow because there is a shortage of supply at the moment, but not for long, and I plan on being there when it happens.

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