When share prices fall sharply, the initial reaction of many investors is to panic and sell otherwise solid investments. If you own volatile stocks like Canopy Growth and Aurora Cannabis, it can feel like you’re holding a grenade. Sometimes, it’s better to dump your holdings before the situation gets worse, especially in a bear market. But there are some stocks, let’s call them pillars, that should be left untouched when the market tumbles.
I believe one of those pillars is Scotts Miracle-Gro (NYSE: SMG). With a robust business that is growing at an impressive rate and lots of potential remaining, this is one of few cannabis investments that you can buy and simply forget about. The stock is a pick-and-shovel play; Scotts provides licensed producers with the tools and equipment they need rather than growing pot itself, making it a less risky investment overall.