Investing in Marijuana Stocks
The marijuana industry is one most rewarding sectors for high-risk investors. The industry is growing quickly due to the increased legalization of the herb in several parts of the world. Consequently, several firms have expressed interest to partner with investors interested in this investment opportunity. For instance, the Canadian regulatory environment is slowly paving way for the legalization of marijuana farming, particularly for recreational use. In the US, several states have already legalized the growth and use of the herb for both recreational and medical purposes though it remains banned at the national level. Despite these regulatory developments, investment in this sector is still perceived as a risky undertaking due to the uncertainty that surrounds the legality of the herb in most parts of the world.
Marijuana has opened up the gates for innovation and entrepreneurship
Nevertheless the ever expanding marijuana industry has presented numerous opportunities for companies that wish to make products and explore innovative ways this herb can be developed. Currently, there are several companies that have invested in the marijuana industry though they do not directly deal with its products. Consequently, this has made it possible for people to invest in the marijuana companies without necessarily getting involved with distribution or farming of the herb. Therefore, people interested in investing in marijuana industry can consider the following business opportunities.
Opportunities that present themselves with Marijuana companies
1) Companies dealing with ancillary services and products: These are firms that produce products that are required in the marijuana processing. For instance, marijuana companies require laboratory equipment, such breathalyzer which is used in testing marijuana products. Moreover, an investor can invest in firms offering insurance to marijuana farmers and those involved in the product packaging.
2) Consulting services: These are companies that offer advice services about the regulations and rules surrounding different jurisdictions of marijuana. Such services could include operational and license services.
3) Marijuana farming technology: These are businesses that provide supportive innovation for developing equipment necessary to grow marijuana including lighting systems and greenhouse innovations.
4) Holding firms: It involves investing in firms that hold the majority of shares in the marijuana businesses. Such firms have a direct control over the marijuana businesses as they control voting and decisions of such businesses.
5)Consumption devices: They include businesses that manufacture products used in consuming marijuana.
6) Organic farms: These investment opportunities comprise of organically growing the herb and selling it to companies to be used for raw materials or selling to consumers directly.
7) Marijuana farming and retailing: These investment opportunities are the most common and involve planting or growing the herb.
8) Biotechnology: It involves investing in pharmaceutical firms that deal with the production of marijuana products for medicinal purposes.
9) Marijuana extracts and products: It involves investing in businesses that deal with selling products produced using marijuana such as drinks, tropicals, and edibles.
Therefore, marijuana offers investors with numerous investment opportunities. Investors with a high appetite for risk can invest in businesses directly linked to marijuana. However, some of these investment opportunities are indirect and thus can provide the risk-averse investors with the much-needed insulation against the high risk related to the marijuana industry.