Cannabis Cash: How to Invest in Marijuana and Make Big Money

What if cannabis could help your bank account get high?

As an industry, cannabis is absolutely taking off. And there has never been a better time to invest in this industry.

However, not everyone knows how to invest in marijuana. How can you learn what you need to know and still strike while the iron is hot?

Don’t worry: we’ve put together a comprehensive guide on how to invest in marijuana. Keep reading to discover our secrets!

Why Invest in Marijuana?

We’ve put together a solid guide to help you invest in marijuana. First, though, we should answer the question: why should you be investing in marijuana in the first place?

The short answer is because the market is booming. The longer answer is the inevitability of legalization.

In America, more and more states are legalizing recreational marijuana. And every new state that legalizes cannabis makes it a safer investment.

Recently, Canada legalized marijuana throughout the country. This led to a further explosion of cannabis manufacture and investment.

While there are no guarantees in the world of investment, cannabis shows no signs of slowing down. And many people want to invest now and get in on what they see as the ground floor of a major opportunity.

How to Get Started

If you’re a veteran investor, you already understand this first step. For everyone else, this is where you get up to speed on investment.

To buy any kind of stock, you need to have a brokerage account. But which stocks will you buy?

Cannabis companies are like any other companies. The ones that are publicly traded are all publicly listed and easy to investigate.

To do more homework before getting started, you should consider checking out the National Institute for Cannabis Investors.

There’s An App for That

As you know, there are apps for just about everything now. And yes, that includes investing in cannabis.

One of our favorite apps for really casual investors in Robinhood. The app is easy to use and makes it really easy to get your feet wet in the world of investment.

When you’re ready to take it to another level, you may want to use a web-based service instead of an app. One of the best sites to use is Vanguard, and it provides many different options for investors whose cannabis confidence has grown.

Diversify Those Investments

Sometimes, newbie investors seem like they are playing poker instead of buying stocks. That’s because they are tempted to go “all in.”

Keep in mind that there are a ton of different companies you can invest in. And while cannabis is growing in demand, many different factors about legalization and regulation could quickly throw your investment in jeopardy.

That’s why most veteran investors encourage people to diversify. And diversifying your investments can work on multiple levels.

First of all, you should invest in more than just cannabis. This is like hedging your bets: one or two investments may fall through, but at least some of those investments are likely to pay off.

And even with cannabis investments, we recommend investing in more than one company. Fortunately, there are plenty to choose from!

Who Should I Invest In?

Only you can figure out which cannabis companies you want to invest in. However, we’ve got some info on a few of our favorite companies below that may help you make your decision.

Canopy Growth Corporation has been living up to their name recently. This company’s stock price actually doubled in 2018. Also, they were the first cannabis company to be publicly traded throughout North America.

They say it’s not what you know but who you know. That’s what makes Aurora Cannabis so powerful: their rumored partnership with Coca-Cola to create a kind of CBD soda. If that rumor turns out to be true, your investment will explode overnight.

Like to invest in more of a sure thing? You may want to invest in GW Pharmaceuticals. As the producer of an FDA-approved CBD medicine, this is a company that already has the government on their side.

Keeping An Eye on the Market

Think that investing in marijuana means sitting back and getting rich? Unfortunately, it involves doing a lot of “homework.”

Specifically, you will need to keep an eye on the market. This can range from the overall health of the stock market, in general, all the way to the performance of your chosen cannabis stocks.

If you’re not already reading it, you should regularly check out the MarketWatch website. You’ll get plenty of cannabis-specific investment information on top of general market info.

Don’t forget that if you use apps and websites to manage your investments, you can arrange to have notifications sent to you for certain events. Between this and your market research, you’ll always be on top of the investment world.

It Takes Time

Let’s be honest: many people look to investing because they think it’s a legitimate way to “get rich quick.” In reality, this isn’t likely to happen.

While there are certainly stories of people buying the right stocks and becoming rich overnight, this is exceedingly rare. What is more common is that your investment grows slowly over a period of time.

Be sure to keep this in mind when determining how much to invest and what to invest in. If your big stock payday is going to be years down the line (if it ever comes at all), you need to avoid investing anything more than you can afford to lose.

Low and Slow

Our biggest advice? You should start your marijuana investment “low and slow.”

What that means is to invest very little at first and take your time learning about the industry. As you become more comfortable, you should invest more.

Ultimately, the more you know, the easier it is for your investment to grow.

Final Thoughts

Now you know how to invest in marijuana. But do you know how else to grow your wealth?

At OnMakingMoney, we specialize in transforming your finances. To see how we can help, come check out our investment advice today!