From the beginnings of hemp industrialization, its prohibition and recent legalization, cannabis has spanned years of dispute, debate and investment. But today, we can already speak of an exponential demand in constant growth.
As of February 2022, as many as 28 types of cannabis are registered and marketed by companies directly involved in its production and distribution. But how to invest in the cannabis industry?
Here we share some ideas.
How to invest in cannabis stocks
To invest in companies dedicated to the production of cannabis it is necessary to have a broker that allows you to buy shares or ETF. A modern purchase system that follows the protocol of buying any stock:
- Selecting a Brokerage Firm
- Opening of commercial account.
In this way, investors can choose from a large number of publicly traded companies in the cannabis industry. They can diversify with an EFT that encompasses different marijuana stocks or limit themselves to a specific segment of the market:
- Cannabis growers
- Biotechnology companies
- Various producers
- Weed dispensaries.
Companies engaged in the manufacture, distribution and sale of cannabis. This may include the marketing of:
- Cannabis flowers
- Vaporizers and cigarettes
And other cannabis products.
Investing in weed dispensaries is another viable option. These are usually retail stores or offices where people can buy cannabis or products developed from cannabis cultivation, either for personal or medical use.
Marijuana Real Estate Investment Trusts
Cannabis businesses may include investment trusts or REITs, based on acquisition, ownership and management of property for medical cannabis facilities.
Companies, in this sense, can acquire properties of this type to lease and offer a space for the administration and cultivation of cannabis.
Companies dedicated to the manufacture of finished products:
- CBD Oils
- Topical skin creams
- Dog treats.
Investing in Cannabis ETFs
Cannabis ETFs are an investment vehicle that relies on a single security that holds various cannabis stocks or marijuana stocks. ETFs can therefore be managed actively or through passive tracking of cannabis performance.
And while ETFs can have diversified exposure, there are ETFs that focus on a small segment of the stock market. However, we are also talking about risky investments.
These are some investment vehicles you can use to get started in the world of cannabis. Another option, of course, is to open a CBD store. A smart alternative that has its own regulations and budget minimums.