marijuana investing basics
marijuana investing basics

Marijuana Investing 101 - Start with the Basics

What kind of companies can you invest with in the cannabis space?

Posted by:
R.W. Navis on Saturday Nov 2, 2019

Marijuana Investing 101 - Start with the Basics

marijuana investing basics

Marijuana Stocks Can Be an Excellent Investment

Investing in the stock market can be one of the best ways to grow your nest egg. However, making the right investments is crucial, and you could actually lose money if you make poor choices when it comes to the stocks that you invest in.


Luckily, marijuana stocks can be a great option for you depending on your time frame for investing.  The marijuana industry is new, and it's growing quickly around the world as more and more jurisdictions legalize cannabis at either the medicinal level or recreational level. In fact, the recent recreational legalization of cannabis in many states means that there are many more potential customers than ever before! Furthermore, the medicinal cannabis industry continues to expand, which gives companies in the industry more potential patients to market their products to.


Not only that, but cannabis products are becoming increasingly popular due to improving social acceptance of cannabis use. In fact, it's estimated that more than 75% of doctors approve of medicinal marijuana, and more than two thirds of people support recreational cannabis legalization.  Millennials use cannabis at over a 60% rate and prefer cannabis to alcohol in almost every public poll done on their demographic.  Senior citizens are also the fastest growing segment of buyers in the cannabis space.


How Do You Invest in Marijuana Stocks?


In order to find marijuana stocks to invest in, the Internet may be the best place to turn for your research, but you need to check your sources and how trusted the site actually is for finanical information.  Luckily, there are many websites that offer information on the public cannabis companies, which can give you an excellent idea of which marijuana companies to invest in. Some great companies to consider when you want to trade online are Scottrade, E-Trade, and Chase. They offer low fees and some now offer $0 trades.  These companies allow you to make investments right from the comfort of your own home, and this includes stocks in the cannabis industry.


In addition, there are sites that specifically cater to individuals who are interested in purchasing cannabis stocks. For instance, features information about stocks in the cannabis industry, and they have a blog that features the latest and most up to date information about investing in cannabis companies.  New Cannabis Ventures is another well known cannabis stock website to check for the latest reports and information on cannabis stocks.


However, you can also get investment advice from other websites. In fact, one website even offers a comprehensive guide to investing in marijuana stocks. This guide gives you all the latest up to date information on investing in the marijuana industry in 2019!


What are the Different Types of Cannabis Stocks that You Can Actually Choose From?


If you want to invest in the cannabis industry, there are several options that you should consider. These are a few of the best options to consider when you're purchasing stocks in the cannabis industry:


Companies That Sell CBD Products


Unlike marijuana that contains THC, CBD can be sold legally in almost all jurisdictions thanks to the passage of the US Farm Act. CBD from hemp is now legal in all 50 states. That's because CBD derived from hemp contains less than 0.3% THC. The general public has had an increasing interest in this compound due to its potential to be beneficial for a wide range of health problems. Due to the increasing popularity of CBD products, this makes for an excellent long term investment opportunity! Some great companies to consider are Kannaway, Cibaderm, and Diamond CBD.


Companies That Cater to Medicinal Cannabis


Over 30 states have legalized medical marijuana, and the use of cannabis for medical purposes is likely to become increasingly commonplace as the years go on. There are companies that produce cannabis products that are used for medical purposes, such as Mari Med. In fact, this company has recently purchased dispensaries in Illinois.  MSO, or multi-state operators, are the main public companies that sell medical marijuana to patients, so look into the different publicly traded MSO when you want to invest in medical marijuana.


Companies That Primarily Cater to Recreational Use


Recreational marijuana has already been legalized in eleven states, and this number is likely to grow in the future. In fact, there are substantial movements underway in numerous states that would legalize the use of marijuana for recreational purposes, which could significantly increase the market for recreational marijuana. One option to consider is investing in companies that run dispensaries.  Florida is a big state in the battle for recreational marijuana dominance in the public markets.


Companies That Do Marijuana Research


Due to the increasing interest in medical marijuana, there's likely to be much more cannabis research in the future, which will be designed to create cannabis-based pharmaceuticals. Some great examples of growing cannabis research companies that you should consider investing in are Canopy Growth, Insys Therapeutics, and Aurora Cannabis.


What are the Benefits of Investing in Marijuana as Opposed to Other Types of Stocks


Most stocks involve investing in companies that operate in an industry that has been around for a long period of time, which means that the cannabis industry has an exceptional amount of potential for future growth. In addition, investing in marijuana may be somewhat more stable than other new industries due to the high level of popularity when it comes to cannabis products.








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