A Strategic Guide On How To Invest In The Cannabis Industry

Basics in Investments

Investing is not something that anyone can learn in a day. It would take many years of studying, researching, and testing. There are a lot of terminologies, strategies, and methods that only apply to the stock market. Some people would even attend courses and seminars to learn how investing in stocks, bonds, and mutual funds works.

The claims on how to get into the cannabis industry are not guaranteed as the performance of the market fluctuates. Before you invest your money, you need to identify your investor profile first. Investing is not for the faint of heart. There will always be risks, but you could probably get a higher reward if you can handle high stakes.

Investing your money should be aligned with your long-term goals. If you want your money to work for you, let it sit there for at least ten years for it to progress. Yes, you can pull out your stocks if you want to, but you might not get the earnings that you think you could have.

If you plan to invest your hard-earned money, research credible financial institutions that could help you build your financial portfolio. If you want to be personally involved and be the one who handles your investments, then you can study and dig deeper into it.

Can I invest in a cannabis company?

According to MJBiz Factbook, legal sales of cannabis are expected to reach $33 billion by the end of 2022. By 2026, it is projected to reach $52 billion. These numbers determine the continuous growth of the market along with the legalization of marijuana which could be best for investors.

There are a lot of cannabis companies that you can invest in, and as a cannabis-centered business, we want to guide you as you make a decision that could leave an impact on your finances.

To help you with how to invest in the cannabis industry, here are some factors that you might want to consider:

1. Research for Marijuana Stocks that has the best value.

Where you will invest your money will determine your investment journey. Choosing where to invest your money is vital for first-time and seasoned investors. You also need to identify the stock that would match your investor profile.

According to Motley Fool, an investment guide, here are some of the best marijuana stocks:

• Green Thumb Industries (GTBIF) 
  Green Thumb Industries is a well-known marijuana grower with 13 manufacturing facilities and retail sites in 12 states. In Illinois, recreational marijuana became legal in 2020. Green Thumb Industries then benefited from the rising marijuana sales in its state.Currently, Green Thumb’s stock is at $11.76. Last March, it rose to $18.05.
  
• Trulieve Cannabis (TCNNF)
  Trulieve Cannabis is also a famous marijuana grower and is the first Medical Marijuana organization in Florida. They currently have dispensaries across eight states in the United States. Trulieve’s current stock price is $13.60.
• Innovative Industrial Properties (IIPR)
  Innovative Industrial Properties, Inc. is a real estate investment trust specializing in regulated cannabis. In 2016, IIP became the first publicly-traded company on the New York Stock Exchange to supply real estate funding to the regulated cannabis market.Innovative Industrial Properties’ current stock price is $112.92
• GrowGeneration (GRWG)
  GrowGeneration is one of the largest specialty chains that focus on the cannabis market. They sell many supplies for commercial and home growers, including organic nutrients and soils, modern lighting technology, and cutting-edge hydroponics equipment.GrowGeneration’s stock price is currently at $3.84.
• Scotts Miracle-Gro (SMG)
  Similar to GrowGeneration, Scots Miracle-Gro operates the manufacturing, marketing, and selling of lawn, gardening, and hydroponic materials for indoor and outdoor gardening. SMG’s subsidiary, Hawthorne Gardening, ranks as a leading supplier of hydroponic gardening products to the cannabis industry.Scotts Miracle-Gro’s current stock price is $92.22.

2. Determine Your Investment Goal

You must first create your investment goal before investing in your preferred investment vehicle. Think of what will be the purpose of this investment. Will it be for your retirement plan, your child’s college fund, future house, or future car?

You can achieve all of these plans by making them an investment goal. Determine your goal and timeframe, then choose the stock that will match your investor profile.

3. Know How Much You Can Invest

As you plan to invest in the cannabis industry, you must know how much money you can set aside. It doesn’t only apply to your initial investment but also to the money you plan to invest monthly or annually.

People must do proper budgeting as investing in your savings or emergency fund is not advisable. As they say, only invest the money you can afford to lose. Again, your claims in investing are not guaranteed as they will depend on the performance of the market.

4. Reach Out To A Financial Planner

There are a lot of financial planners and financial institutions that could educate and help you on how to invest in the cannabis industry. They will surely make your investment journey as easy as they can. These people are fund managers who are experts in strategizing how to make profits from your investments.

Aside from helping you manage your investments, financial planners could also offer you other cannabis-related investment vehicles that match your investor profile. If you aren’t sure about your decisions, they will guide you and help you start building an efficient investment plan.

Investing might be too complex for a beginner, so it’s always best to ask for help from an expert.

Conclusion

One of the most important decisions you will ever make as a cannabis enthusiast is to invest your hard-earned money in the cannabis industry.

It may seem overwhelming at first, but if you’ve decided your investment goals, how much you’ll invest, and collaborated with a competent financial planner, you’ll have a significant advantage in making your money work. Note that the benefit of investing in can also lead to offering jobs in the cannabis industry.