Almost everyone has heard of it, but only a relatively small number of investors have taken the leap into cannabis stocks and green investing. This is an emerging market with a lot of potential growth for those brave enough to put some money down. So far 11 states have legalized cannabis and it’s expected that the other states will eventually follow suit. This guide will show you the benefits and ways to invest in these emerging stocks.
Investing in Marijuana
There’s a few things to clear up here before going forward. Part of the reason that many people are hesitant to invest in marijuana is because of the “moral dilemma” it causes. Business decisions are about cutting out the emotional and being rational.
It doesn’t matter if you use marijuana, if you like it or how you feel about it. Investing is all about putting money where it will grow the most. This will be discussed later, but there is huge potential growth here and you’ll either be thankful you did it now or struggling to catch up when it’s acceptable to invest here.
Different Marijuana Stocks
There are several marijuana stocks being traded on the open American and Canadian market. In fact, many of them will sound familiar because they are big companies joining the cannabis boom. In general, you can select between companies that only sell cannabis and those adding cannabis to their line of products.
If you want a pure cannabis company, then some of the best cannabis stocks are from Innovative Industrial Properties (IIPR), Trulieve Cannabis Corporation (TRUL), Canopy Growth Corporation (CGC), CV Sciences Incorporated (CVSI), Medicine Man Technologies (MDCL) and Isodial International Incorporated (ISOLF).
There are also many big brands getting into the CBD and cannabis boom. This includes CVS, Walgreens, Amazon and Constellation Brands. While you’re investing in a brand new product, it boils down to just buying one of these stocks.
Benefits of Investing in Marijuana
Cannabis sales are huge and are only going to get bigger as this becomes legal throughout the country. Experts believe there are a total of $50 billion in cannabis sales, but only $10 billion from the legal market. Imagine the possibilities of your stock exploding when this remaining $40 billion is finally legalized.
Most emerging markets are fraught with indecision. They feature a product or service that seems great, but no one knows if there will be enough demand. Cannabis stocks are one of the few times that the demand is apparent and the stocks are there waiting for investors.
How to Start Investing in Stocks
This part is meant for new investors. If you already know how to invest in stocks, then you may want to skip this section or just use it as a refresher. Some new would-be investors get stuck from the beginning because they don’t know how to buy stocks. It’s easy if know where to go.
There are three major steps to start investing. The first step is finding a broker and opening an account. Each broker is slightly different, but they all gives you access to the stock market.
The next step is funding your account. Most stocks are around $20 to $60 depending on the company. Most brokers have account minimums, so keep this in mind when starting your account.
The last step is to choose a cannabis stock and buy as many shares as you’d like. Some of these stocks were highlighted above, but you can expect many other companies to join the race as this becomes legalized throughout the country.
Pros and Cons of Cannabis Investing
There are some pros and cons of investing in cannabis. The pros are that there is demonstrated demand for these products, the stocks are still affordable and many big companies are joining the race.
The cons are that any new product has risk. There is always the chance that people stop buying cannabis. There’s also the chance that legalization will not go through, which seems unlikely but possible.
Investing in cannabis has never been easier and now is the best time to start. Enter this market now before it gets too hard and you miss out on this opportunity.