It’s astonishing when you look at how far the cannabis industry has evolved in such a short time.
In less than a decade, the expansion of legalized hemp has expanded in all 50 states, with 19 implementing recreational marijuana.
With developments at this rate, many individuals wonder—is now the time to invest in cannabis?
In this article, we will be heading into a few topics, such as:
- The cannabis industry
- Should you invest in cannabis stocks?
- How to invest in cannabis stocks
Time to go!
The Cannabis Industry
Although cannabis has been around for thousands of years, the cannabis industry in the U.S. is still new.
Recreational marijuana was legalized in 2012, but it wasn’t until two years later for businesses to open.
And while it seems the path to legal marijuana is slow, the numbers have skyrocketed in profits.
According to The New York Times, 2020 was the cannabis boom, with legal sales passing $17.5 billion in U.S. dollars (a 46% rise in sales from the previous year).
The rapid increase in sales has turned the heads of many investors.
Should You Invest In Marijuana Stocks?
When discussing any investment, it’s important to consider that there is always a risk. There are still many challenges ahead for the cannabis industry, making the market volatile.
Unfortunately, there is no way to know how successful this market will become. With marijuana’s current federal legal status, there are still many challenges that lie ahead.
Because of all of the variables to consider, it is difficult to determine how long it will take for smooth sails in cannabis stocks.
So before you decide to invest, take note of the risks and do your research.
How to Invest in Cannabis Stocks
Like the common route of investing stocks, individuals can invest in the cannabis industry by purchasing a stock of the companies within it.
Stocks in this industry will be segmented into three categories:
- Marijuana and hemp growers
- Marijuana and hemp retailers
- Cannabis-focused biotech companies
The process of investing in these stocks is similar to investing in any other industry. Look into the company’s financial performance and compare it to its competitors. Following this, review upcoming projects that the company has in store.
As stated above, it’s essential to do your due diligence and seek advice from your financial advisor.
Remember, we are not at liberty to give out financial advice. This article should not be taken as anything beyond what it is—a short article on the brief introduction of investing in cannabis. We hope that we were able to broaden your knowledge of this new market, and cannot decide whether or not you choose to do further research.