Investing is a tricky topic. Even if you studied economics, investment patterns, and stock market practices for fifty years, you would still not be able to definitively predict the safest investment with the highest return. The stock market is constantly changing, as is the public's perception of what's important and worthwhile. They say no one knows what tomorrow will bring, and that's doubly true when you're investing in an industry.
The cannabis industry in North America is slightly different than other investable industries on the market, due to marijuana's controversial popularity and its US federal status as a Schedule I drug (though a reclassification is in the works). As a potential investor, you want to put your money into something you believe in, something that you morally agree with, and something that you expect to bring you a profit (and hopefully a lot of it). And while cannabis may seem like an unsteady investment, trends show that the industry's worth is only expected to increase. So if you're interested in putting your money where your mouthpiece is and building a pot portfolio, take a look at these five ways to invest in the cannabis industry:
Throw Cash at Cultivators
There are cannabis growers spread all across the greater North American region. With weed's increasing popularity, it makes sense that the cultivation of marijuana plants would attract the attention of enthusiasts and businesspeople alike. While growing pot still comes with a negative stigma, cannabis cultivators and labs make up a large percentage of marijuana suppliers for medical and recreational dispensaries throughout the US and Canada. Demand is high, and so is product output. Why not support a cultivator whose policies and practices you trust?
If you would rather not focus your energy (and cash) directly on marijuana cultivation, consider investing in the field of micropropagation. This practice of plant tissue culturing is designed to help growers combat the presence of unhealthy pathogens, increase their crops' yields, and helps scale their production to meet the ever-increasing demand of marijuana users.
Back Cannabis Brands
Some organizations do more than just grow marijuana ? they also test it and distribute it as flower, edibles, concentrates, and more. A wide variety of recreational and medical marijuana brands are climbing their way steadily up the stock market. The cannabis markets in Canada and the US are worth billions of dollars each, and projections show that they will likely only continue to grow. If you're ready to invest your money into companies that supply users with marijuana products, including accessories, clothing, beauty products, or skincare goods, consider sinking some money into any one of these brands.
Invest in Real Estate Firms
When you think about marijuana, I'm guessing the first connection that your mind makes isn't to the popular field of real estate. But think about it: In US states where medical and/or recreational marijuana is legal, dispensaries and shops are opening their doors left and right. And the real estate demand goes beyond storefronts ? greenhouses and industrial warehouses are being snatched up left, right, and center in Canada, and by 2020 the country is expected to require over eight million square feet of space to accommodate the expanding marijuana industry.
Stocks: ETFs and OTC
Exchange-traded funds (ETFs) are marketable securities that can be bought and sold like a regular stock. Most public cannabis companies have ETFs available for trading on the over-the-counter (OTC) market. Smaller public companies (like most marijuana companies) are frequently unable to meet the requirements of major exchange listings. OTC stocks, also called unlisted stocks, are instead traded by broker-dealers communicating directly with one another through a dealer network. If you're a stock market guru or you’re looking for a traditional way to invest in the cannabis industry, marijuana stocks may be the right option for you.
Start a Canna-business
Are you ready to invest more than just money into the cannabis market? If you've considered starting your own business and you're willing to dedicate the time and energy to that goal, opening a marijuana dispensary could be a great opportunity for you to dig into the industry. And if selling pot isn't your cup of cannabis tea, there are other options ? like starting a cannabis advertising agency or opening a graphic tee shop. If you've got the drive and ambition, this might be the perfect way for you to invest in the cannabis industry.
Know Your Options
Alright, so you read through your options and now you're wondering about next steps. You're in luck! There are entire agencies that understand the benefits of investing in cannabis and want to help others do the same. CannabisFN is the leading financial media network covering the North American cannabis industry, facilitating the growth of marijuana brands and companies through the attraction of investors, capital, and national media attention. With a sole focus on cannabis since its inception in 2013, this media network is an essential resource for potential investors and businesspeople in the US and Canada who are interested ? or active ? in the cannabis industry.