Actually, it is somewhat contentious as to what the song is actually about. The writers' state it is about losing one's innocence but to many it was seen as a metaphor for marijuana (hence someone's comment today about C&C).This offers some insight and there are many other points of speculation if you seach.
https://en.wikipedia.org/wiki/Puff,_the_Magic_Dragon
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Afternoon trading July 30, page-209
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