There’s never been a better time for investing in marijuana stocks. With Canada’s recent legalization of marijuana and marijuana legalization growing in the United States, the industry is set to boom. Many provinces are now trying to meet the massive demands of consumers, making growers, suppliers, and retailers in high demand.
With the growth of the industry will come huge profits for established marijuana businesses. Many big merges and investments are currently happening. This is likely to grow even more as the attitudes towards marijuana become more positive and consumers grow. Investing in marijuana stocks is a fantastic idea right now for anyone interested in investments. So how do you start and which stocks should you be looking at?
Why You Should Invest in Marijuana Stocks
It goes without saying that the marijuana industry will grow. As legalization becomes more widespread, more and more people are becoming interested in marijuana. Consumer demand is huge, with some provinces in Canada even running out of stock in the first few months. This only makes companies such as marijuana growers and suppliers more valuable.
In 2017, the Canadian cannabis industry was worth an estimated $3.0 billion, trumping the beer and tobacco industry even before legalization. In 2018, this grew to $5.7 billion. As demand for pot continues to grow, you can expect profits to become even higher.
Of course, this trend is similar in the United States. It’s estimated that spending on legal cannabis will grow from $9.2 billion in 2017 to $47.3 billion by 2027 according to Forbes. Worldwide spending on legal cannabis is expected to grow up to $57 billion.
New cannabis companies are cropping up all the time. There are also many long-running cannabis businesses which will experience extreme growth. With that said, the marijuana industry is a good one to invest in. If you aren’t already, it’s well worth taking a look.
How To Invest in Marijuana Stocks
With the marijuana industry set to grow, many people will be looking to invest in marijuana stocks. This works much the same as investing in any other kind of stock. You’ll need to find worthwhile companies, do your research, and invest wisely to get the best return on your investment.
There are a few different routes to investing. Many people use the services of a local stockbroker to invest. There are also financial advisors and investment managers which can handle your investments for you. Investing online with online brokers is also now easier than ever, and many people manage their investment portfolios from the web.
You can do a lot of research about investments via the internet. Websites like Nasdaq give you a lot of information and data on stocks. You can also follow stocks via stock exchange sites, which give you important data on profits, growth, and recent news on companies.
Most people buy stocks from the New York Stock Exchange. Whether you invest in Canadian, American or global companies, most of these still list themselves on the NYSE. Once your stock grows to the point you’re happy with your returns, you can sell the stock and enjoy the earnings or reinvest.
Risks of Investing in Marijuana Stocks
Just as with any investment, there are always significant risks involved. While the marijuana industry looks set to boom, that doesn’t mean every marijuana business will generate big profits on the stock market.
It’s essential to always carry out your research before investing. As the industry grows, so will competition, and many companies will make losses. It’s also important to consider how much you’re investing and how much you could potentially earn. Higher value stocks are valued as such for a reason, but cheaper stocks can often be diamonds in the rough.
Stocks will fluctuate in value a lot. The marijuana industry also has the potential to be volatile as laws often change, especially stateside. Nonetheless, cannabis businesses are still a worthwhile investment right now providing you look for the right stocks.
Best Canadian Marijuana Stocks
Canada is a great place to look right now for marijuana stocks on the rise. As of 2018, marijuana is legal across the country, and with retailers struggling to meet demand, suppliers and growers are becoming more valuable. There are some huge corporations here which look set to grow.
Canopy Growth (NYSE:CGC) is perhaps the most valuable marijuana stock in Canada. The corporation has supply agreements to provide marijuana all over the country. It also received a massive investment of $4 billion from Constellation Brands, which will see it grow even further.
OrganiGram Holdings (OTC:OGRMF) is another marijuana stock well worth keeping an eye on. With a much lower price than major corporation stocks, this could be a bargain. OrganiGram’s value rose 18% in the first quarter of 2019. The company has benefited significantly from recreational cannabis legalization and plans to expand production even further.
CannTrust (OTC:TRST) is also set for major growth. The company has agreements to supply many parts of Western Canada with a production capacity of over 100,000kg of cannabis. It also makes significant revenue from sales of cannabis oils- a market that’s likely to grow with many consumers opening up to the medical use of cannabis.
It’s also a good idea to look stateside for valuable marijuana stocks. America is home to many of the world’s most renowned cities for pot consumption. The market is also likely to grow as more states plan to legalize weed.
Any investor or aspiring investor should consider looking into the cannabis industry right now. It’s a perfect time to get involved with many corporations receiving huge investments and planning to expand their operations. As with any investment, research is crucial and you should always consider the risks before making any rash decisions. However, with an industry that’s guaranteed to grow, it’s a risk worth taking for investors.
There are many huge cannabis corporations which make for great investments. There are also many fast-rising companies which have the potential for massive growth. Remember to look into all of your options or even consider getting professional advice. The marijuana industry could grow enormously over the next decade. Be patient and you could make some enormous returns.