3 Ways to Make Money off Marijuana
August 17, 2021 (Investorideas.com Newswire) By now, most everyone recognizes that bud is big business. Weed is making waves in markets across the United States, raking in billions - with a B - of dollars every year. While it is way past time for investors to get in on the ganja ground floor, it is still possible to make money off the relatively young and undeniably thriving cannabis industry.
Here are three ways anyone can make money off marijuana, even if you aren't particularly interested in partaking yourself.
Invest in Individual Bud Businesses
Canna-businesses have it tough. Due to continued prohibition of cannabis at the federal level, few traditional financial services are available to those within the cannabis industry. Most cannabis entrepreneurs cannot secure small business loans or lines of credit, and many are unable to offer customers payment options beyond cash. As a result, only canna-businesses with significant financial support can get off the ground - which initially meant only those operated by wealthy entrepreneurs could survive.
These days, states and cities are giving more resources to smaller canna-preneurs, like social equity programs that prioritize minority entrepreneurs in awarding business licenses. Even so, small cannabis businesses could use your financial help, if you are willing to give it. You can invest in dispensaries, grow operations, testing laboratories and more; almost every type of cannabis company is in dire need of extra capital, and in smaller and newer markets, your investment could mean the difference between smashing success and immediate failure.
Some of the largest cannabis businesses in the U.S. pull in hundreds of millions in revenue every year, but the ever-shifting laws and culture governing the cannabis industry could unseat any of these major players at any time, allowing a once-small Phoenix dispensary to take its place. If you can use your investment to make a canna-preneur's dreams grow, you could reap massive rewards as the cannabis industry matures.
Invest in Sticky Stocks
Because the cannabis industry is relatively young, cannabis stocks tend to be quite volatile - and that is exactly what many investors are looking for in their investment strategies. Turbulence can be an excellent tool when you are looking to buy low and sell high over a short period of time, and there are plenty of cannabis stocks that are enticingly cheap and all but guarantee big returns.
You can find all sorts of advice for which stocks to invest in when. Big cannabis companies that often attract the attention of newbie investors include Curaleaf, Cresco Labs and Trulieve, and while these companies are likely to continue to thrive, you might see more lucrative gains by looking for the next great cannabis corp.
Additionally, you shouldn't limit yourself by searching only for cannabis companies that grow weed or sell it; there are all manner of canna-businesses trading on the market. For example, you can find real estate investment trusts (REITs) that own real estate assets related to cannabis agriculture, which make up the best-performing property sector for years on end. You might also look into pharmaceuticals, like the makers of Marinol and Epidiolex, two FDA-approved cannabis-related drugs. Finally, manufacturers of cannabis paraphernalia, especially vape tech, are seeing a good amount of growth as more states move to legalize. Using these tools, you can enjoy a beautifully diverse portfolio that is based almost entirely on weed.
Invest in Canna-collectibles
Plenty of investors prefer to put their money in things they can hold in their hands, and fortunately, the cannabis industry offers a few types of valuable collectibles worth chasing. Some of the most valuable canna-collectibles are seeds, especially from rare or valuable cannabis crops. Seeds of certain strains can be difficult to come by, and feminized or auto-flowering seeds of certain varieties are equally sought-after. Seeds stored safely, to ensure their lasting viability, could increase in value over time, especially if and when certain genetics become diluted in the rapidly expanding industry.
Other cannabis accoutrements that hold value include pipes, bowls, posters and other memorabilia important to cannabis culture. For example, reels and marketing materials for the original "Reefer Madness" film go for hundreds of dollars. Likewise, vintage merchandise from the Grateful Dead will become hot ticket items in the coming years. It might be worth paying attention to the tides of cannabis culture to drive your collection to a profitable peak.
Cannabis can make you money, but it can also cost you a good chunk of change. As long as you do your research, understand the risks and appreciate your successes, you should find happiness and wealth in cannabis investment.
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