The Best Way to Manage Your Cannabis Investments
When considering a cannabis investment, there are a number of different ways you can go. It’s possible to invest in many different subsectors of the market, including supply infrastructure like greenhouses and hydroponic systems, new product development, patent development, brick and mortar stores, e-commerce and website development, and cannabis tourism to name a few. But how do you invest, and where? Do you put all your pot investment money into one company or do you spread it out? Depending on your personality, there could be several answers. Take a look at some possible strategies, and see if any of these ways to invest in weed appeal to you:
The Thorough Investor: Start-to-Finish
If you are someone who is always afraid they’ll miss the next best thing, then hedging your bets might be the way to go. Consider the business from seed to smoker, and invest a little in each category. First, take the companies available to invest in. Divide the companies you might want to invest in, into sectors and market niches. From there, choose your favorites within each niche, and invest a fraction in each niche. It makes financial sense to choose mostly those with proven track records, and maybe have one that seems a bit riskier, but has the option to hit it really big. That way, if it flops, like some of these do, the bulk of your principal is still safe.
The Next Big Thing: Innovation
If this is play money and not your life savings, then trying to hit it big might be exactly the way you want to invest in cannabis. This means staying away from the established businesses, and going for the companies who are trying new experimental products or are going into untapped new geographic markets and newly innovated industry verticals. To keep risk lower, look at the products that they’re trying to make and see if they really make sense. If you or the cannabis users you know would use them and find them clever and with growth potential, then you’re on to something. Pharmaceutical innovations also make a lot of sense to invest in, as this is one of the highest profit sectors of any business.
Play It Safe: Established Cash Cows
Of course, there are few really bad plays in the cannabis investments game these days. But, if you’re nervous, go with the longest-running, longest profiting companies, and ensure that they have a good game plan to continue. If there’s a company who has been successful in setting up shops in newly legalizing states, then you know you’ll at least have a run of the next few years as more states legalize the drug.
No matter the investment, make sure you believe in the idea, feel comfortable with the direction of the company, and can see a long-range future for them, and especially the opertors. From there, invest and enjoy watching the profits roll in.