THIS IS A TEXT ABOUT PSYCHEDELIC COMPANIES. PERIOD. Nothing philosophical here at all.
(plus a new video interview with me released January 4, 2021, about understanding what’s really going on – in all respects, from politics and economics to cosmology, physics and resonance.
There are currently 40 psychedelic companies listed on Psilocybin Alpha’s website
“Just Say No”
As a group they are probably a terrible investment. Overhyped, idealistic trail blazers, fighting the last remnants of Nixon’s and Reagan’s misguided politics.
“War on drugs”
-how can you ever choose which ones to invest in?
My raw thoughts on this, i.e., this is what I would do:
Start with the list on Psilocybin Alpha’s site, and sift through the list using sites like Koyfin, Wallmine, Investing, and so on, looking for information about the following:
If the right backers have already done the job. Peter Thiel, e.g., has invested in Compass Pathways. And there’s already high finance banking research on the street with a target price 100% up from here (Nota Bene: I never make investment recommendations. Talk to a certified adviser).
Enough funding that can be used for research and acquisitions, consolidating the industry. Check the latest cap raises or cash levels. Compass reported 200 million dollars in cash in its Q3 2020 earnings release.
High market cap. means the market likes it, and it can use its shares for raising more capital or acquiring other companies. Mind Medicine and Compass Pathways are high up on the list.
The business model should make sense, and have a clear path to profitability or an exit. Is it running a chain of therapy clinics? Does it grow magic mushrooms like a farmer, produce pharma grade LSD, DMT, MDMA or other therapeutic substances in an advanced laboratory? Is the company built around naturally ocurring molecules like those in magic mushrooms or DMT; or are they trying to create new molecules that can be protected by patents? Do they have a clear commercial focus, as opposed to being mostly idealistic, non-profit researchers and enthusiasts (“hippies”)?
Further, are they going for treating depression, anxiety, substance addiction, OCD, PTSD, Parkinson’s, eating disorders, ADD/ADHD or something else? There are some tentative findings regarding enhanced communication skills for people with Autism Spectrum variations. Maybe there is an angle there that would make an investment more or less interesting? Depression, substance addiction, eating disorders and PTSD treatments have massive potential, but some niche markets might still be even more lucrative.
Pick the biggest companies. I would start with the top 4 companies that have the most available cash in millions of dollars, largest market caps, most well-known backers.
Go for support infrastructure companies, not the hard core product innovators. This part is tricky…, are service companies or product companies the best investments? Without patents it’s hard to make tons of money. On the other hand Wal-Mart, Amazon and Alibaba are doing ok just selling stuff that isn’t patent protected. And researching and producing new psychedelic molecules takes time. If natural substances are good enough, and have proven safe over half a century and billions of recreational sessions why would you pay dearly for a new lab-made, artificial, un-tested product?
I would center my investments in the sector on companies running clinics, that at least initially focus on substance-assisted psychotherapy using natural, patent-free psychedelics. Mind Medicine has the largest market cap, a cash position that rivals that of Compass Pathways, and runs clinics as well as do research on new compounds. I would spice up my portfolio with a magic mushroom farming company. Only lastly, I would punt a still fair portion on a true product company. My choice would probably be Compass Pathways. It’s big, has a lot of cash, the right backers, and an interesting, semi-approved, new psilocybin derivative.
Remember: raw thoughts, not a finished product, and I don’t own any shares in psychedelic related companies. However, I might of course buy some with a second’s notice.
Nota Bene, I don’t make recommendations. So, do not construe anything of the above as financial advice or recommendations. I hold no licenses. Do your own research and consult a certified financial adviser. Investments can make you lose everything.
PS: The Amazing Interviewer Hardy Haberland recently released a YouTube video of our conversation we had on New Year’s Eve. We talk a little about psychedelics toward the end, but there are spots of insights sprinkled throughout the talk.
TIP: subscribe, he has published 350+ interesting interviews with accomplished and inspiring people. Hardy’s style really draws out the best of people. It’s just weird that he only has 800 subscribers. WEIRD!