When you're browsing for growth stocks to invest in, sometimes it's best to leave the stuff you see in the bargain bin for someone else to buy. As the legendary Warren Buffett once said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Let's take a peek at a pair of popular growth stocks in the cannabis industry to see exactly how true Buffett's advice can ring.
Aurora Cannabis (NASDAQ: ACB) is one of the most beaten-down cannabis stocks in the entire industry. Investors will recall that back in 2018, Aurora announced it was acquiring medical marijuana company MedReleaf for more than $2.5 billion in what at the time was the sector's largest deal. Today, Aurora is worth about one-fifth of that value, with a market cap of over $400 million.
The global legal marijuana market could grow at a compound rate of 25% by 2030, according to Grand View Research. One-time investor favorites Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have seen their stocks dip more than 90% in the last three years. Aurora and Canopy have been in pursuit of positive earnings before interest, taxes, depreciation, and amortization (EBITDA) for quite a while now, but have failed to reach their goal.