Ever since marijuana was legalized in countries like Canada and in several U.S. states, people have been enjoying legal highs. Yet, people aren’t the only thing getting high. Legalization created a new investment sector, with profits soaring higher than ever before.
There’s still time to enjoy some of the profits, though. The best marijuana stocks to buy are actually the equivalent to blue-chip ones. Companies that have already been established and are trusted by investors still have a lot of room to grow.
The industry as a whole still has a lot of space to grow in. No matter how you invest in marijuana, you can expect to see your portfolio get higher and higher. That doesn’t mean you shouldn’t listen to investing experts though – it’s always possible to lose money, even in weed.
So keep reading below to learn how to effectively and safely invest in marijuana stocks.
Marijuana Stocks Are Legal, Even If Weed Isn’t
New investors may be worried about investing in marijuana because it’s a new sector. They may doubt that marijuana stocks are here to stay and that they risk losing money from regulations any other kind of legal intervention. Yet, there’s really nothing to be afraid of.
Individual states are continuing to legalize recreational marijuana. And the issue is quickly garnering support towards legalization on the federal level. A majority of Americans actually support marijuana legalization.
And even if regulations try to stop the industry’s growth, businesses can leave America to make their money. Canada legalized weed, and so have other European countries. A savvy investor can trust that if weed isn’t accepted domestically, businesses will simply set their sights internationally.
Finding Marijuana Stocks To Buy Means Using Other Exchanges
Many weed stocks are actually listed on different markets than the traditional NASDAQ and other exchanges. To buy weed stocks, investors will need to venture into exchanges like the TSX and TSX-V. The Toronto-based exchange is actually a popular choice for marijuana-related industries to list themselves on.
Just because it’s a Canadian exchange doesn’t mean American investors are barred from buying stocks, though. This post from CannabisFN can help walk you through buying on Canadian exchanges and explains how marijuana stocks ended up on them.
Weed Cultivation Stocks Are Still Growing
When Aurora Cannabis acquired its competitor, MedLeaf, it was considered the biggest weed deal to go down yet. Yet, clocking in at only $250 million, the deal stands to be dwarfed.
As recreational sales continue to spread throughout the US and Canada, cultivators will face increased demand. Weed retail will need to stock its shelves somehow, and companies like Aurora how to make their profits soar. Expect them to increase production as well as prices, leading to an increased stock.
With all this growth, you can also expect cultivation companies to invest in new tech and materials to collect more marijuana. This can only result in a healthy and intense competition which will benefit everyone else down the supply chain.
The market is still young, and cultivators are competing for the honor to see it grow.
Medicinal Marijuana Is Getting Higher
As legislators wake up to benefits of marijuana, people are already using it medicinally for a variety of illnesses. Some people use it as a sleeping medicine to help them drift off and avoid the struggles of insomnia. Other people use it for more intense illnesses, like cancer, AIDS, or even anorexia.
This will only grow as both an interest in natural alternatives grows, as does an acceptance of weed. The companies selling medicinal marijuana will stand to benefit the most from this perfect storm of profit. And since it’s already legal in many states to use marijuana medicinally, there are fewer obstacles in the way to profits.
Weed legalization has also allowed biotech companies to start experimenting with different strains. This means retail and medicinal companies can expect a larger variety of strains for their customers. People will have a variety of choices beyond just choosing between indica or sativa.
And with variety comes foot-traffic to try out the newest kind of weed, which is only followed by cash.
Ancillary Businesses Are Soaring Too
Weed stocks haven’t been the only ones to get high after legalization started to become a reality. Ancillary stocks like farm equipment and packaging also began to rise, since weed depends on them. Examples of a few are below.
Hydroponic Stocks Are Dripping With Revenue
Weed got its nickname because people realize it could grow in almost any condition. Yet, when weed grows in poor conditions, it ends up being an inferior strain. Now that legalization is becoming a reality, people are demanding the best out of their weed.
To ensure the plant performs at its best, cultivation companies invested in hydroponic technology. This way, they can control and adjust the environment weed grows in, and can guarantee its quality.
Packaging Stocks Are Packing Profit
Weed doesn’t just grow on trees – it takes work and effort to get it on the shelves. And part of that work is packaging it, which several states strictly regulate. Even without state regulation, weed must be packaged carefully.
Otherwise, it’s quality may decrease as exposure to the air may make it lose its potency and flavor. And as more weed is shipped between countries and states, packaging companies are finding more business.
Gardening Supplies Stocks Are Supplying Portfolio Growth
People are getting more and more interested in getting into the marijuana industry. They stand to profit from it, either through a paycheck or by building a company. However, as with any industry, they must prove that they know how to do the work. They must prove that they can grow weed safely and effectively.
Doing that takes gardening equipment, and as a result, gardening equipment stocks are soaring. Whether it’s a small-scale cultivator looking to get started or a multimillion dollar company, growing weed takes farming tools. And the people who supply those tools are benefiting from weed’s growth.
Become A High-Profile Investor With Weed Stocks
The marijuana industry is just beginning, and you can still blaze through it with just a few bucks. To reap the highest profits, all you need to do is invest in the industry. Every company in it stands to grow, a lot.
Yet, savvy investors don’t just want profits; they want to maximize their profits. And doing that means knowing which marijuana stocks to buy. To do that, keep reading here.
Our website stays updated on a variety of movements and industries, all of which can affect the nascent marijuana industry. We’ll be the first to let you know if the UK opens up to weed, for example, and what you should do if it happens!