Opinion: Big Is Bad for Pot Stocks in 2019 -- The Motley Fool

Monday, Jan 14, 2019

The marijuana industry delivered a year for the ages in 2018. Although marijuana investors found themselves on the outside looking in, with most pot stocks ending the year down, the cannabis industry gained validity like never before.

When the curtain closed, Canada had become only the second country in the world (other than Uruguay), and the first industrialized nation, to have legalized recreational marijuana. Beginning Oct. 17, 2018, adults were able to purchase marijuana legally throughout Canada, laying out the red carpet for what should be billions of dollars in added annual sales in the years to come.

Image source: Getty Images.

There's little doubt that the burgeoning pot industry offers plenty of opportunity for investors. The question remains: Which marijuana stocks to buy? Though I'd bet it's an increasingly unpopular opinion, my take on the current year is that it won't be very friendly to large, brand-name pot stocks. In other words, big is bad for pot stocks in 2019.

Now, I know what you're probably thinking, and you're partially right. Bigger marijuana stocks are well known, are predominantly listed on major U.S. exchanges that improve their liquidity allow for Wall Street investment, and have what look to be tangible competitive advantages over smaller peers. But there are a number of issues that could disproportionately impact bigger pot stocks in 2019 that have me believing they're largely worth avoiding.