How Would You Invest In The Cannabis Industry?
With cannabis being on the verge of federally legal many people are wondering how to get involved in the cannabis industry. Well for starters it depends on how you want to be involved do you want to invest in marijuana stocks? Or do you want to start a cannabis product line? Or do you want to work for an already existing cannabis company? When it comes to cannabis it was once a taboo subject that was only discussed in private settings. Fast forward to today and cannabis is practically running the world. There are not many places you can go that don’t have some form of cannabis or hemp product.
For example, many if not most gas stations and convenience stores, and smoke shops are selling CBD products. These products range from candies to tinctures, lotions, and even joints. The start of this CBD craze came shortly after the Hemp Bill was passed back in 2018. What this did is differentiate between cannabis sativa, hemp, and marijuana. With marijuana and cannabis sativa they both produce THC as with hemp there is no more than 0.3% THC. This is what made it legal to start selling and producing.
What Comes Next For Legal Cannabis
Now that the White House administration is controlled by the democrats there is much excitement about the future of the industry. Many believe 2021 will be the year we see cannabis decriminalized on a federal level. In the past, many attempts to push for federal cannabis reform have been made but failed. Why will this be different? For one as mentioned above the new administration is run by Democrats. As well Vice president Elect Kamala Harris has made a promise to federally legalize cannabis. If she can help make that happen many believe it will cause the cannabis industry to reach its full potential.
Not only that it will allow for other places around the world to take part in the U.S. cannabis markets. This leaves the bigger question of how can people get involved. Many thought when states first went legal that they missed their chance to get in on the action. However, as it stands today more opportunities exist than people think. Below we will talk about some of the ways you can start investing to become part of the legal cannabis industry.
How To Invest In The Cannabis Industry
- Marijuana Stocks
Selling CBD Products
So now that people are becoming more comfortable with cannabis, it’s leaving them wondering how to get involved in the cannabis industry. For starters, one of the easier ways to get involved in the industry is starting your own CBD company. This involves no license just a budget for start-up costs such as products and packaging to name a few. There are wholesale CBD companies that provide these kinds of services and provide everything you need to get your CBD business started.
From pricing to packaging to testing which is what many customers look for when buying CBD products. The rest comes down to marketing and branding and the outlets you choose to sell your CBD. Currently, the CBD market is booming and can be a good entry point for those looking to get started with minimal risk. Yet anytime you decide to invest its always a risk so make sure to weigh the pro’s and con’s of your decision
Investing In Marijuana Stocks
Investing in marijuana stocks is more hands-off the plant approach to getting involved in the cannabis industry. First, you will need to set up a trading account. These are digital platforms that allow you to invest and trade stocks. Once that has been done you can start your search for the best marijuana stocks to buy. Now when looking for cannabis stocks you want to understand the difference in each company. Now when looking for stocks in general there 3 tiers small-cap mid-cap and large-cap. Which is the market value of a publicly-traded company’s outstanding shares.
Now with marijuana stocks, these fall into several areas. For example, you have pure-play pot stocks which are companies that deal with the physical plant. Next, you have MSO or multi-state operators are cannabis companies that work in different states or regions. As well you also have ESP or extraction service providers. These companies work on extracting compounds from the cannabis plant which make concentrates and tinctures like CBD. Now before you make the choice on which cannabis stock to buy you need to do your homework on each selection.
When researching a new pot stock you want to make sure how current the companies information is. For instance, the companies financials should be up to date in addition to any new company updates. As well you want to look at charts to determine the trading pattern of given marijuana stock. This will help you have a better understanding of companies trading history and the likelihood of seeing a return on your investment. So with this is just a small look into a few things that you can do to begin your journey into the cannabis industry.