So, you’re thinking about investing in marijuana?
We get it. You’re a smart cookie and want to know what you’re getting yourself into. You’ve heard about the $37 billion industry, and you’re wondering if this is something you should be putting your cash into.
If you want to make some serious cash on legal marijuana, then follow these steps. Read on for everything there is to know about the THC industry to get an edge over your competitors.
Invest in Marijuana Stocks
Marijuana stocks are an excellent way to gain exposure to the marijuana industry without actually having any physical marijuana product. By buying shares of a publicly-traded company, you are purchasing part ownership of that company and its profits. You may also receive additional benefits, such as voting rights on certain matters within the company.
As a reminder, investing in marijuana stocks is considered high risk. It’s best to invest money that you’re not attached to.
Directly Investing in Marijuana Companies
You can invest in the legal marijuana industry by providing the capital needed to support or grow marijuana plants. High Profile companies are actively seeking investors, but there are also smaller marijuana firms that could use the extra cash. The key is to find a company that you believe in.
Invest in Marijuana Futures
Futures are a way to speculate on the future price of something, like gold or oil. Futures contracts are binding agreements between two parties that agree to buy or sell an asset at a certain price on a specific future date. The futures market allows investors to take positions in things they can’t afford now, like substantial marijuana investments.
Futures trading involves more than just betting on whether an asset will go up or down. It also helps manage risk by allowing people who want protection against wild price swings.
Buy Shares of Marijuana ETFs
ETFs are investments that track an index or a basket of assets. They allow you to invest in a diversified portfolio without having to buy the stocks of individual companies.
For example, if you wanted to invest in legal marijuana, but don’t want to buy shares from the company that produces or sells it, then you can invest in an ETF that tracks cannabis stocks instead. Most marijuana ETFs are small-cap funds, making them an attractive choice for risk-tolerant investors who want to get in on the ground floor of a potential industry boom.
Make Your First Marijuana Investment
It’s a good time to consider investing in marijuana, as the industry is poised for continued growth over the next decade. However, it’s important to remember that there are still many regulatory and legal obstacles facing the budding marijuana industry. That said, if you’re interested in investing in this sector of the stock market, there are plenty of ways to get involved!
You can learn more about getting started in marijuana investing by checking out our previous article on the topic.