Depending on where you are in the world, the idea of investing in a cannabis business might have seemed like a laughable prospect just a few years ago, but the industry is well and truly flourishing now. So many states have legalized, not to mention whole countries who are now legalizing cannabis. People call it the “green rush”, so how can you get involved and turn a growing industry into an investment prospect?
We’re looking at investing in the cannabis business in this post, exploring the industry and the stocks you might want to consider if you are thinking of investing. This may have seemed risky once upon a time, but there are no signs of this new industry going anywhere.
Marijuana Industry: Everything You Need to Know
The idea of an “industry” in marijuana has grown so much due to the legalization, but there is also a lot of cannabis marketing and different products people have started to use that are helping businesses to grow. For instance, people are using cannabis-derived products for all sorts of different things. Did you know that cannabis products can be used on your skin to help with inflammation and spots, for instance?
From beauty products to medical marijuana products to just recreational use of marijuana, there are a lot of different ways that cannabis is growing, and working its way into everyday products. You don’t have to ever be “high” to experience many of the benefits.
Obviously, recreational and medicinal legalization has had a huge impact. Many states in the US now allow cannabis to be bought and sold at dispensaries just like over the counter drugs. This means growth and profit. Also, the fact that there is a lot of speculation that further states will follow suit. This can encourage even more growth for companies providing cannabis.
How to Invest in Marijuana Stocks?
Investing in Marijuana stocks is very similar to investing in other company stocks. Before a lot of the legalization took place, there was no chance of stock exchanges recognizing the companies. Now, they are all above board, and publicly traded and regulated just like other stocks and shares.
You can buy them on the New York Stock Exchange (NYSE), NASDAQ and Canada on the Toronto Stock Exchange (TSX). This means you can go directly to the stockbrokers you would use for investing in any other stocks.
You need to be aware that there is always a risk buying any stocks and shares. Some cannabis companies will succeed and others may fail, but the huge amount of buzz around the industry right now is not without any reason. People are waking up to the possibilities of this product and the new marketplaces created by legalization.
There are still a lot of regulations in the cannabis industry. You should only invest in companies that have the ability to deal with these regulations as they may fall foul of fines if they are seen to be doing things they should not be!
Top Marijuana Stocks to Buy Today
There are certain stocks that are talked about more than others at the moment, and some of the most popular stocks people are investing in can be found below. These companies are listed on stock exchanges and their initials have been included.
The stocks we recommend looking into can be found below:
HEXO Corp (HEXO): This is one of the suppliers and companies that are all about the recreational market. They’ve only been listed on the Toronto Stock Exchange since June of last year. A lot of their market share is in Canada due to the fact cannabis is legal.
Canopy Growth Corp (CGC): The Canopy Growth Corporation is not just involved in the supply of cannabis but they are also involved in a lot of research around the benefits of cannabis products.
Cronos Group (CRON): Cronos is a distribution company and cannabis grower. They have experienced a lot of growth.
Tilray Corp (TLRY): Tilray is not just about cannabis, and this diversification in products and pharmaceuticals makes them an attractive prospect for a potential investor. They are a cannabis grower too and were actually the first cannabis company to be accepted into the NASDAQ index.
Buying ETFs
An ETF is basically a bundle of stocks in the cannabis industry that is made to track markets and provide a profit for those who invest. This is a way to see the benefits of the industry overall rather than just one specific company. If you choose the right ETF you can experience a safer investment.
There is risk involved in every industry you plan to invest in, but the surge in people who are moving to invest in cannabis businesses is not just a coincidence. Industry experts predict further growth.
