What are your thoughts about the cannabis industry?

[Gediminas]

Dear forum readers,

Have you ever considered investing in the cannabis industry? If so, what type of investment?

Feels like the first big boom is over, but pretty sure there will be the next one once the European market opens up or regulations in the US take place under the Federal level.

By saying boom is over I do not mean that the cannabis industry in the US will stagnate. Actually the opposite - American Cannabis Stocks Are Working Their Way To Wall Street

Very interested to see what you guys and ladies think about it.

 

[Tax Cow]

An opportunity for day traders and speculators. Eventually only for short sellers.

In a legalized world, over long-term, why should a gram of cannabis cost significantly more than a gram of exotic tea blends or cumin spice? To me, a business that makes packaging for cannabis products is more interesting as an investment. Agriculture is a ruthless business of low entry barriers, low margins, and high risk.

Cannabis-growing industry will be marginalized, eventually off-loaded to third world peasants who don't want a profit, but just some food to eat at the end of the day. In 3 years, nobody will talk about cannabis industry in the news, just like nobody talks about sunflower industry.

 

[Gediminas]

Yes, I agree with the part that you wrote.

Growing cannabis and selling pot is not the only business in the cannabis industry. Let's say - the medical side of the market? Or whatever else? I mean, from the entrepreneurs" perspective, I see a lot of opportunities once it becomes fully regulated.

 

[Tax Cow]

Right! Companies that look for profitable medical or industrial uses for cannabis should not be discarded as a joke. These could become real money makers as the price of their primary business input drops. I like that side much better than the plant itself.

With that said, where would you fit it in ones portfolio? In place of speculative tech stocks? My stocks are 90% in dividend-paying allocations, and just 10% on the hope of a future profit distribution.

 

[karishi]

In a legalized world, over long-term, why should a gram of cannabis cost significantly more than a gram of exotic tea blends or cumin spice?

Well, you can pay fairly different price for a gram of alcohol. A 180$ bottle of Krug is not the same thing as a bottle of 2$ prosecco, even if they are both alcohol, so they are the same drug. Vineyards sells for millions of € for ha in Italy and France, and probably in Napa Valley too, because the terroir matters in alcohol production. I'm not an expert of Cannabis, my drug of choice is alcohol, so I could be 100% wrong on this, but in the long term I would expect that cannabis products could have a lot of differences which are much more complex and subtle than the current "the DNA of my strain is better than yours". Where you grow it, how you grow it could matter. And I think that selling drugs is always an interesting market to be in.

 

[Gediminas]

I would expect that cannabis products could have a lot of differences

Totally. I have no doubt quality products grown organically will have a big share of the market there.

With that said, where would you fit it in ones portfolio?

I would actually build something from scratch. And I probably will, if the regulations will fit the idea.

 

[Gediminas]

I think selling canna is a saint work. Why? Because cannabis can save from a lot of problems that alcohol or heavy drugs can cause. Since canna can give anyone a high effect that relaxes the man that is so tired of the job that wants to forget about all the things that he wants. Another thing is that mary jane can help u with health problems. Sometimes it's cancer-related problems. How I can't be against cannabis after my words that it's a saint? However, I like more CBD gummies from the Europe since the quality of them are pretty high, and I think many people can cure themselves using the CBD gummies since it's not hard just to just chew gum. What's your opinion guys?

There is a good documentary on Netflix called Weed on People. It's about treating cancer with cannabis.

 

[Frank N Stein]

Cannabis stocks are slowly rising, it's projected to be a good investment in 2021.

Did you ever think that there would come a time that smoking weed is legal and having a haircut isn't?