Excessive diversification with little focus on quality
Some cannabis investors tend to go to the other extreme — over-diversifying their portfolio with an excessively large number of pot stocks. If an investor has 40 or 50 pot stocks in the portfolio it will obviously include several companies without merit. Over-diversification in cannabis stocks can backfire and end up diluting the value of the portfolio. With a very large number of stocks, too, it becomes more difficult to keep track of their performance and make timely trades. Far more time is consumed in managing too many different stocks of small value.
