Investing in Marijuana | Potup.com
5 min read
Over the course of the past few decades, the attitude on marijuana has started to change quite a bit. More and more people are finally realizing what many already knew, and medical professionals are finding ways to utilize cannabis in treatments for their patients. Many states have even legalized the recreational use of marijuana. Thanks to these changes, marijuana has become a multibillion-dollar industry, and now is the ideal time to start considering making investments. Stocks and public companies could be a good option.
Let’s get a closer look at several of the companies that could be of interest to investors today. We will learn more about who they are and what they offer, and you might find one or more of these companies in which you would like to invest.
AmeriCann, Inc. (ACAN)
This company is located in Denver, CO, and they are a publicly listed company (ACAN) on the OTCQX marketplace. They work primarily in the medical cannabis industry by building and owning highly efficient cultivation processing facilities to produce medical cannabis. In addition, they provide infused products their partners can offer to patients, and they even provide venture capital to cannabis businesses that are in development.
Cannabis Sativa, Inc. (CBDS)
This company is located in Mesquite, NV, and they specialize in the fields of marijuana and industrial hemp. They are a growing company that works to create the best quality cannabis products possible and to be innovators in the industry. In 2017, they agreed to acquire the White Rabbit brand of cannabis, and 51% of PrestoDoctor, which is a medical marijuana telemedicine platform. With the quick growth of the company, this could potentially be a good option for investors.
American Green (ERBB)
American Green Corp., located in Tempe, AZ actually has a long history in the field, as they were one of the first publicly traded tech companies working in medical cannabis. They currently have more than 50,000 individual shareholders, making them the largest public company in the cannabis field. They have been in the field for 18 years and they are still going strong. In addition to being a publicly traded company, they also happen to offer investment opportunities for certain partners through their site.
Hemp, Inc. (HEMP)
Hemp, Inc., located in Las Vegas Nevada, as the name suggests, is a company specializing in hemp products. They have been acquired by Global Hemp Holdings, LLC. Their site is focused on helping people to learn more about hem and all of the myriad ways it can be utilized.
Please keep in mind that these are just some of the companies out there involved in the marijuana industry today, and there are many others that could make for nice investments, as well. However, before you make any investments in this field, it is important that you understand the risks and that you have an idea of how you can help to mitigate those risks as much as possible.
All Investments Carry Risk
One of the most important things to remember, regardless of what types of investment you decide to make, there is always an element of risk. When you are making an investment, always be sure to research the ins and outs and learn as much as possible about the company. There is plenty of opportunity when it comes to investing in this field, but you do need to take some precautions. Let’s look at some of the elements you will want to keep in mind when it comes to investing.
Find the Larger and More Reliable Companies
With the boom in the marijuana industry, there are quite a few companies out there right now looking for investors and plenty who have stocks available for purchase. There are micro-cap companies that have market capitalization of less than $250 million and nano-cap companies with capitalization of less than $50 million. These companies do have a substantial amount of potential to grow, so you might want to put some money into those types of companies.
However, when it comes to very small companies, there tends to be quite a bit more volatility, which you might not want to deal with in your investments. Therefore, you will likely find that putting your investment dollars into some of the larger companies in this sector is a safer option.
Look Outside of the U.S., Too
While there are certainly quite a few companies in the United States for you to consider with your investments, you should also look to some companies that are outside of the U.S. Canada, for example, is likely to be a very big market, and companies there are set to do very well in the coming years. The same thing is true today in Australia and Israel, as they have voted to allow for legalization of medical cannabis. Recreational usage will be available in Canada within a year, and other countries may soon follow. There could be some truly fantastic investment options beyond the borders.
It’s a Long-Term Game
In the short-term, you might find that this field seems volatile for investment, and that’s true. However, that is not what you should be looking at. With legalization and recreational usage on the rise, you will want to invest and hold onto your investments for the long haul. The biggest opportunities, and the biggest rises in this field are likely to appear over the course of the next several years.
Always Diversify
Never put all your eggs into one basket. That is true no matter what type of investments you make. Make sure you are investing in different types of marijuana stocks and companies, so if one should fail, you still have others to help shore up that loss and keep your portfolio safe. In addition, do not put all your money into marijuana. Spread it around in many types of investments for the best results.
If you are looking for a quality investment, start to look at the various stocks and other investment options with marijuana. It is the next big thing, and you can get in on this investment action right now.
Resources: https://www.cnbc.com/2015/04/22/investing-in-public-marijuana-stocks.html
https://americangreen.com/
https://www.streetauthority.com/node/30701412