Connect with us

Business

What New Investors Should Know About Buying Cannabis Stocks

When you’re investing in cannabis stocks, or still deciding whether or not you want to, there are a ton of factors to consider.

Jessica Delfino

Published

on

What New Investors Should Know About Buying Cannabis Stocks
Shutterstock

The era of legal weed is giving marijuana fans and aficionados tons to get excited about. In addition to enjoying open and safe access to the plant, people can engage with the cannabis industry via pot stocks.

With projections estimating total US cannabis revenue to reach $24 billion by 2025, the market is poised for expansion. Global attitudes about cannabis are shifting, and as more countries opt for legalization the global cannabis market is expected to explode – reaching as much as $57 billion by 2027.

Investing in stock, understanding the legalities of cannabis, and making sense of the industry’s idiosyncrasies is daunting to most. It’s a nose-dive into an underground culture full of confusing terms. But with researching and mining the available resources, anyone can become stock savvy.

Among the information you might find while researching, though, are press releases and videos posted by brokerage firms, like TD Ameritrade, urging people to avoid buying cannabis stock. You might also find stories about investors not being able to leave their countries after investing in cannabis stock. And intermixed with all this info, you’ll find stories about people making 10 grand in a matter of hours. All of this might make you ask is it legal? Is it safe?

Keep in mind, however, that it may be difficult getting advice about investing in cannabis stocks from a financial adviser or investment firm. Melissa, a mother who wishes to remain semi-anonymous, says she’s considering investing in MedMen—a chain of marijuana dispensaries located in California, Nevada, and New York. Unlike other investments she’s made, though, facilitating the investment through her Texas-based investment firm has proven difficult. This is where an investment app, like RobinHood, comes in handy.

“We have other investments, but due to the restrictions in Texas, the firm isn’t able to swing it on our behalf,” she says.

 

 

Matt Karnes of GreenWave Advisors, a company that specializes in managing marijuana-related investments, began his cannabis investment firm four-and-a-half years ago. “It’s an evolving industry where there are a fair amount of charlatans who still exist,” he tells High Times.

Interestingly, most of the companies Karnes believes are worth following are ancillary businesses. For instance, Karnes believes MJ Freeway, the company that created the cannabis industry’s first seed-to-sale tracking technology and also developed the first enterprise resource planning product, is an attractive investment.

Karnes also gave a shout out to High Times. “[High Times has] a clear brand advantage and a strong management team, so I do think there’s a great opportunity there,” he said. “By and large, I think it should prove to be a successful operation.”

Consider the Big Picture

Karnes also suggests thinking about the long term.  What companies will be sustainable when federal law changes and cannabis becomes universally legal across the United States? “When the laws change, I do believe there are going to be companies that will become less significant,” he says. “For example, some of the banking solutions. When the banking laws change, which they will, there won’t be a need for this interface to comply with banking requirements. When cash is able to be banked like any other industry, you won’t need those kinds of businesses.”

Tara and her husband have done tons of research on the market. By researching, they are strategizing their investments based on the future of federal legalization and its effect on financial institutions. They’re also deciding on an investment amount that works well for both of them. “We’re probably going to go with 1-5 thousand,” she says optimistically. “We see the growth in states where marijuana has been legalized as promising and want to be part of the industry—especially as we expect federal regulations to ease up on U.S. financial institutions in the future.”

Another common misconception about investing is that you have to be rich or spend a lot of money to invest. But we’re here to tell you that’s simply not true.

 

 

High Times is going public!

High Times is fueled by the simple belief that the cannabis movement should focus on the community. That’s why we believe our expansion efforts should come from those who will benefit most from our growth—our loyal High Times fans, cannabis enthusiasts, and early investors.

An investment in High Times is an investment in the future of cannabis media and the preservation of the amazing culture we have created. We have been the original voice in cannabis for forty-four years, leading the charge for cannabis decriminalization even when other publishers have balked. It’s this transparency and drive that has allowed us to grow into one of the most trusted brands in the marijuana space.

Trending