Did you know that in 2017 cannabis stocks outperformed Bitcoin and gold? Clearly, the cannabis business has grown into a legitimate industry.
With the increase in legalization in some States and other countries, it’s time to consider how you can benefit from pot–even if you never smoke it.
One way to grow your portfolio without growing weed is to invest in pot stocks.
Whether you’re new to investing or looking for something more, it’s a good idea to consider new options. Let’s look at why you should invest in cannabis stocks.
Big Pot Companies Mean Big Pots of Money
The legitimate weed industry has grown beyond seedy underground operations. Some major pot corporations supply cannabis for medical marijuana use.
As more states and countries legalize recreational use of marijuana, these corporations are best poised to reach more into the recreational supply of weed.
Today, there are six major companies to watch. Any of these companies could be worth your while as an investment.
- Aphria Canada: This company currently supplies marijuana to the medical industry. Aphria is also branching into the recreational marijuana industry.
- Aurora Cannabis Inc: While this company grows a large volume of pot, their true value might be with their numerous industry patents.
- Cronos: This company doesn’t grow weed. Their focus is the chemistry of the plant and how to make it more efficient and economical for other countries to grow cannabis.
- Canopy Growth Corp.: With the largest square footage available to grow pot and agreements to supply weed in every Canadian province, this is the “big dog” in Canada.
- GW Pharma: This company develops cannabis-based medicines for cancer, autism, and other difficult-to-treat illnesses.
- Tilray Inc: Tilray is the first marijuana company to go public on one of the major U.S. market exchanges.
Using innovation and technology, pot companies aren’t just blowing smoke. These companies are pioneering the world of legitimate cannabis businesses.
How Do You Get Started?
We understand it might seem weird to think of investing in pot stocks.
Fortunately, there are many ways to get involved. If the idea of buying stock in weed is too unconventional for you, there are other options.
Buy Stock in Hemp
Consider hemp the gateway to marijuana investments.
You’ll find hemp used in different ways in a variety of industries:
The seed: Companies use hemp seeds in organic body care and health foods. Hemp oil helps create biofuel, lubricants, and cosmetics. If you take CBD oil for depressions, anxiety, or chronic pain, chances are it comes from hemp.
The fibers: Hemp fibers create clothing, paper, construction materials, and plastic composites.
With so many uses for hemp, the industry is worth your investment. Industrial hemp in the U.S. is working its way to becoming legal on a federal level.
But don’t worry–there are plenty of hemp production companies outside of the U.S. for your investments.
Invest in the Process
If you’d like a little space between yourself and marijuana, look for companies that supply materials instead of weed.
Companies like Kush Bottles manufacture and distribute packages, bottles, and supplies to dispensaries and other weed-industry retailers.
Benefit from weed with a buffer for your investments.
Choose the Bigger Picture
As marijuana fights to stand on its own, marijuana is often one part of a larger company’s production.
Look for companies that have a larger presence in the medical field. Medical marijuana might be a new division or new product line for an established medical company.
It’s also becoming common for breweries to supply weed where marijuana is now legal. Established beer brands see the investment opportunity in the emerging pot industry.
Invest in larger parent companies and benefit from their success as they invest in the weed industry.
What Should I Consider Before I Invest?
When weighing your weed investment options, ask a few questions about the companies on your list of potential investments.
How much weed does the company grow now?
There’s currently no standard way to calculate the cost of the cannabis product versus its selling price to determine the value. Growers use a variety of cost vs. income calculations.
But to the best of your ability, do some research and find out how much a company grows now and how much it’s worth.
How much weed can a company grow in the future?
Not to be too punny, but you want to invest in “growing” grow companies.
Do they have more land for crops? Are they buying more smaller companies? Are they expanding contracts to supply more states or provinces? Are they providing supplies to both medical and recreational industries?
If the company is not growing weed, what do they do?
And how does it impact the weed supply chain? Is there room for growth or innovation with each company?
Patents and expansion are good signs of growth. And with patents, it’s a good indication of long-term sustainability for a company.
Even with a little insight, it’s hard to know the best cannabis stocks for your investments.
But you don’t have to figure it out on your own.
The National Institute for Cannabis Investors does the research for you. The cannabis stock industry is new and exciting. It’s low-risk, but it’s not without pitfalls.
Find a trusted source for your cannabis stock news and insight. You’ll see a better return on your investment with a little help.
Cannabis Stocks Are an Investment High You Need
If you’re looking to diversify your portfolio, go high with cannabis stocks.
The industry is on the fast-track. Governments and other supply industries are accepting cannabis as a legitimate industry. With so many benefits, it’s not a half-baked idea to invest in pot stocks.
But if the idea of putting your money into weed and weed-related businesses isn’t comfortable for you, there are plenty of other good investment opportunities out there.
Read our article on turnkey real estate. It’s a solid way to invest. You’ll earn money no matter where you are. And you don’t have to worry about any gray legal areas to make you nervous.