Billionaire investor Warren Buffett held the annual shareholder meeting for his company,
Berkshire Hathaway, earlier this month, and one of the things he pointed out was how dramatically the list of top 20 companies in the world (by market cap) has changed since 1989 -- none of the companies that made the list then are on it today. Selecting a company to invest in isn't easy, and Buffett warns that there is "a lot more to picking stocks than figuring out what's going to be a wonderful industry in the future."
It might be a tough message for growth investors to hear, but it's one they shouldn't ignore. Investors need to look no further than the high-growth cannabis sector for an example of how returns can vary wildly depending on the stock you invest in, despite the broader industry's amazing potential.