Have you heard of the big green rush? Cannabis stocks present similar opportunities to strike it rich in a way we haven’t seen before.
With the rise of marijuana-related products and the decriminalization of the drug, pot is going corporate!
Even Former Speaker of the House John Boehner, who fought against the decriminalization of marijuana for years, is seeing the green. He’s seeing the financial opportunity that marijuana presents.
If you’d like to get in on the ground floor of this opportunity, now is the time as the market starts to mature like a lovely bud.
Find out how you can invest in marijuana stocks and claim your stake in this green rush.
How to Invest in Cannabis Stocks
There are dozens of ways to invest in marijuana companies. When you think of investment, you often think of stocks or mutual funds.
Unfortunately, you’re not investing in a blue-chip stock like Apple or Intel.
Remember, marijuana is illegal according to federal laws. The opportunities to invest in marijuana companies will be a bit more limited. You can invest in those stocks, you just need to do more research as to where. You won’t find them on the typical and well-known stock exchanges like the New York Stock Exchange.
You have two options to invest in marijuana stocks: penny stocks and mutual funds.
Mutual Funds
Mutual funds are a diversified portfolio of stocks and holdings. They’re managed by professional money managers. Think of mutual funds as a type of collective ownership. You may not be able to afford a share of a stock like Amazon, which is trading at about $1,600 per share.
With a mutual fund, you can invest in a portfolio of stocks that includes holdings in Amazon. Some of the bigger names in mutual funds are starting to invest in pot-related holdings because they see the opportunities for growth.
Vanguard is one of the biggest funds out there. They disclosed last year that they invested in marijuana companies. Other funds such as Fidelity Investments, Franklin Templeton, and American Funds are likely to follow suit.
Penny Stocks
You won’t find Amazon trading as a penny stock anytime soon. Penny stocks are smaller stock offerings, usually at $5 per share or less.
Where you find penny stocks listed will tell you a lot about the quality of the stock offering. Different exchanges have different requirements to list stocks.
The New York Stock Exchange and NASDAQ have very strict requirements to be listed there. These requirements are overseen by the Securities Exchange Commission as a way to protect investors from fraud.
Over the Counter Bulletin Boards don’t have to meet the SEC’s regulations to be listed. Since they’re not regulated, there could be some questionable stocks listed on the boards. You’ll need to do your homework before investing in these funds.
Creative Marijuana Investment Opportunities
If the traditional stocks and mutual fund investments aren’t appealing to you, you can still invest in marijuana companies.
There are plenty of types of companies out there because consumers are looking for many pot-related solutions. They’re looking for ways to pass drug tests, calm anxiety without pharmaceuticals, and have a good time.
When you look closely at the marijuana industry, you’ll notice that there’s a lot of marijuana investment opportunities up and down the supply chain.
Farmers, edibles and product manufacturers, and dispensaries are all looking for investors. There are more corporate level opportunities for marijuana growing suppliers, too.
There are also marketing companies that work exclusively with marijuana companies to help them develop and grow their brands.
You can invest in any of these companies. Finding these opportunities can present a challenge, however. You can start by looking for cannabis business incubators. Incubators are places where startups go to grow their ideas.
They provide connections to investors, and help startups with their pitches, and create a foolproof business plan. You can connect with these incubators and let them know that you’re looking for marijuana investment opportunities.
Follow the Industry Closely
It’s not wise to think of marijuana investment opportunities as a sure thing. If you’ve ever placed a bet on a sure thing, you know that anything can happen, and that sure thing can become a bust.
That’s why you need to take the time to evaluate your investment opportunities.
Before you invest in a grower, take the time to learn what kind of reputation they have. Do they know their stuff when it comes to creating new strains? Do they have a knack for creating strains that the public will love?
The more you know and understand about the industry, the better. Look up traditional financial outlets like CNBC for news about cannabis stocks. That will tell you how closely these stocks are to becoming mainstream.
There are also cannabis investment associations and financial publications. These groups and publications are similar to having your eyes on the street. You can be sure you know exactly is going on in the industry, who the new players are, and what products are taking off.
You want to meet other investors, too. These can be seasoned veterans looking for other investors to partner with. They can also be investors that can help you evaluate opportunities before you make a critical investment.
Investing in Marijuana Like a Pro
There are plenty of cannabis stocks and investment opportunities available. There will be more opportunities as the market matures and marijuana becomes decriminalized and legal at the federal level.
You can invest in traditional stocks and mutual funds or you can invest in a marijuana company as an angel investor. The choice is up to you. Like any investment, there are risks involved. You’ll need to do your homework before planting your investment to grow.
Would you like to know more ways to grow your money? Take a look at these business articles.
