Trying to make money from marijuana in the not too distant past would have required you to do some shady stuff. As of today, there are eleven states that have legalized marijuana for recreational use and thirty-five states that have legalized marijuana for medical use.
With the marijuana industry taking off in recent years, more and more people are wondering how to invest. Take a look at the ten tips for marijuana investment opportunities.
In This Post:
How Much is the Marijuana Industry Worth?
The North American marijuana market is expected to exceed $16 billion in 2019. There is immense growth in the market, which continues to expand year after year. With more than half of Americans in favor of legalizing marijuana, that growth is bound to continue to become amplified.
There are plenty of marijuana investment opportunities, and now is the time to get in while you still can.
What Are the Risks?
There are risks in all investments. Even consistently performing stocks have down days, so don't be surprised if your marijuana investments do too.
Market risk is a risk that all investors take when purchasing stock. However, the growth of the marijuana industry makes it very enticing.
Another risk that exists for potential investors is the illegal market that still exists for marijuana. Even in states where marijuana is completely legal, even for recreational use, there is a market for illegal marijuana sales. In California, illegal marijuana sales are still thriving despite legal marijuana sales exceeding $400 million.
What Are the Rewards?
Just as with any investment, there are also rewards. Getting in on the ground floor, so to speak, means your ability to invest is greater. As more people jump on the ganja bandwagon, the opportunities become fewer and farther between for small-time investors.
Not only that, but knowing where the proceeds are going from recreational marijuana sales is also quite rewarding. Many states marijuana sales tax proceeds fund schools, public safety, social services, and other forms of government.
Private Sector Jobs
While perhaps not a typical financial investment type, one way to invest your mind and life in marijuana is by seeking out a private sector job in the marijuana industry. There are a lot of positions available — from plant cutters to cultivation technicians.
Like any plant-based industry, there are people needed from the ground up — literally. Marijuana cultivators need people in the fields, taking care of these profitable plants.
Another job opportunity is an extraction technician. Extraction technicians work with the plant on a scientific level, researching the strains, quality, and consistency of the buds (many of these technicians have PhDs).
On a retail level, there are also opportunities for “budtenders” — sales reps at local storefronts.
The financials on these specific positions vary from state to state and from business to business. Some of these positions, particularly those held by white-collar, PhD-educated professionals, can be quite lucrative.
One way to invest in the marijuana industry is by starting (or buying into) a grow house. Grow houses are just what they sound like: locations where marijuana is grown. Of course, grow houses have potential to supply medical and recreational marijuana.
Grow houses can be normal homes bought and used for growing marijuana. If you're considering investing in a grow home, you should know that these homes must typically be specially-wired as a result of intense energy needs.
There are a number of grow-ops across the United States, and investment in these types of operations could be a good bet.
With more than half of U.S. states allowing marijuana sales (either be it for recreational use or medical use), there are plenty of opportunities for retail investors. It seems like dispensaries are popping up on every corner these days.
If you've got the business smarts and it's legal in your state, there is no reason not to become a dispensary owner. Direct sales may also be more your cup of tea — these can be great personal finance builders.
Another huge investment opportunity in the marijuana industry is that of CBD. CBD is a rapidly growing product on the market.
CBD stands for cannabidiol, which is a cannabinoid. Cannabinoids are plant products extracted from hemp or marijuana plants. They give the plants the qualities they are so well-known for: getting high.
CBD has no intoxicating effects. CBD comes from hemp, which is totally legal when sourced correctly. Hemp is less than a half percent of THC, which holds the psychoactive properties known for getting users high.
Hemp is used in many different environments and marijuana doesn't have nearly as many uses, which makes hemp a multi-faceted investment opportunity. The hemp and CBD industries are a billion-dollar industry, and they're growing every day.
What are the Best Marijuana Investment Opportunities?
There are so many variables when it comes to any investment, and there is no exception when it comes to the marijuana industry. As with any investment, there are risks. However, with so many different ways to invest, you almost can't go wrong.
There are no “best” marijuana opportunities because there are a lot of positions in the marijuana industry. Silent investors, stock market traders, grow operations owners and operators, budtenders, cultivation technicians… the possibilities are endless.
Take a look here at some tips on how to raise funds to invest or get started.