The College Investor

Millennial Personal Finance and Investing Blog

  • Facebook
  • Instagram
  • Twitter
  • YouTube
  • About
  • Products
  • Free Tools
  • Contact
  • Escape Student Loan Debt
  • Start Investing
  • How To Earn More Money
  • Save More Money
  • Forum
Home » Investing » Stocks » Marijuana Stocks and Other Ways to Invest in Cannabis

Marijuana Stocks and Other Ways to Invest in Cannabis

Last Updated On May 23, 2019 Mario Favela 6 Comments

This article contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

marijuana stocks

The marijuana legalization movement has exploded in the United States. It started with medicinal marijuana (MMJ). Now things are moving towards full legalization for recreational use and that is opening up a whole new potential industry.  Investors should start to take notice of marijuana stocks.  

State by state, the movement spreads. When we first wrote this article a few years ago, the map only had a few states in green.

Toady, most of the United States allows some form of legal cannabis.  It’s just a matter of time before it is be legalized for recreational use on a federal level.  The states in green below currently allow some form on cannabis use (and the "D" means decriminalized):

Map of Legal Marijuana

PhotoCredit: WikiMedia Commons

The morality of using cannabis aside, it’s obvious that there is opportunity in this expanding market. But the MMJ industry still struggles with some unique problems. For example, most large financial institutions won’t work with the companies that sell medical marijuana. 

Despite the setbacks, cannabis is set to become a major part of our economy. There is a lot of potential for investors and entrepreneurs.  There are already several marijuana stocks out there for investors to buy.

Quick Navigation
Marijuana is a Growing Industry
Watching The Pot Stocks
1. Grower
2. Dispensary
3. Delivery Service
4. Contractor
5. Trimmer & Bud Tender
6. Device Maker
7. Online Entrepreneur
8. Venture Capitalist
9. Stock Investor
List Of Pot Stocks And What They Do
Final Thoughts

Marijuana is a Growing Industry

Some are comparing it to the California Gold Rush back in 1849. That is a fair analogy. Like the gold rush, there is money to be made. An entire industry has grown up around legal weed. And it’s likely that this is just the beginning. 

Figures are murky, so it’s tough to accurately figure the total potential of the pot industry. But it is getting larger every year. According to Forbes, MMJ was worth approximately $9.2 billion in 2017. Some estimate it will be worth around $47 billion a year by 2027. That's a huge growing trend!

There are many people who are making money from legal cannabis. MMJ has created jobs that didn’t exist just a few years ago. Some of these opportunities are limited to people living in states with relaxed pot laws. Others are available to all of us. 

How can investors and entrepreneurs take advantage of this trend? Let’s look at 9 market and business opportunities available for those who choose to enter the legitimate marijuana market, from investing in marijuana stocks to other opportunities. 

Watching The Pot Stocks

It's important to note that pot stocks are some of the most volatile investments out there currently. Given that the industry is small and growing, Federal law is still murky, and they are small cap stock in general, many of these stocks aren't likely the best investments.

Similar to invest in penny stocks in general, there is high risk here. However, there is also the potential for high reward.

Given the odd business climate in the United States, many pot stocks are located in Canada and trade on the exchange there.There are a few stocks that trade on the NASDAQ or NSYE in the US, and that number is tarting to grow.

Here are some major focuses for investors.

1. Grower

It all starts with the seeds and plants. Growing marijuana is a science. Individuals can start with just few plants as allowed by state law. The larger organizations employ master growers, hydroponics farmers, and botanists.  Think of this like a professional agriculture operation - if legalization occurs, mainstream farmers may switch to this crop as well.

In fact, the University of Mississippi has restarted it's "legal" growing operation to fund studies for various government departments all over the United States. This is a good sign for other marijuana growers.

2. Dispensary

The dispensaries take on lots of risk.  They are the pharmacies that sell medical marijuana.  However, they have doors to kick down, and the Federal government does it regularly. But that hasn’t stopped them from spreading all over cities in California, Arizona, Colorado, and other states. 

3. Delivery Service

Delivery drivers will bring cannabis right to your door. A great opportunity for those looking to get into the weed business with minimal investment. 

If you've been following the news later, Uber, Google, Amazon, and more are getting into the specialty delivery space. You can even do side hustles as a delivery driver with companies like Post Mates. Adding in marijuana will only grow this area.

4. Contractor

Electricians, construction crews, and irrigation experts are all needed to build large-scale grow operations.  Many cities in areas where medical marijuana is legal already have hydroponic shops that have experts in these areas.

In fact, several investment firms have focused specifically on this area, including GreenGro Technologies. Just building the equipment and spaces required in the industry can be lucrative.

5. Trimmer & Bud Tender

Trimmers clean up the buds and make them pretty before sale. This seemingly boring job can pay very well. Bud tenders work at dispensaries, ringing up customers and providing them with advice on different strains.  Think of it as the sommelier of marijuana.

6. Device Maker

A large sub-market. There are a variety of device makers making and selling grinders, glass smoking devices, smoking paraphernalia  etc. Vaporizers are a very popular area of this market.  Many smoke shops are already selling a variety of devices for tobacco use that are used for marijuana.

In fact, Seattle company mCig Inc. is an herbal cigarette and vaporizer maker that has explicitly stated it's focusing on the marijuana market.

7. Online Entrepreneur

Weedmaps is a great example of how legal weed gave someone the chance to create an entirely new business. And that’s just one example. Countless blogs, weed-themed stores, review sites, and other businesses make money for online entrepreneurs. 

8. Venture Capitalist

As cannabis goes mainstream, the big money moves in. Forbes reports that venture capitalists are investing cash in the industry. Leafly is one example. The cannabis review and dispensary website is a venture capitalist backed MMJ business. 

9. Stock Investor

Not everyone is cut out for the weed business. And not all of us have deep pockets like a venture capitalist. But you can still profit from cannabis. Investors can buy marijuana stocks. 

Also, be careful because investing in marijuana stocks can get you fired in some cases.

List Of Pot Stocks And What They Do

If you're looking for marijuana stocks or companies that focus on related industries, here's a short list of some of the major companies and what they are focused on. 

Some of these companies are large conglomerates that have a small focus on marijuana, while others are exclusively focused in the space.

Company Name

Ticker Symbol

Focus

Canopy Growth Corp.

CGC

Production and marketing of both recreational and medical marijuana

Aurora Cannabis Inc.

OTC: ACBFF

Production and marketing of both recreational and medical marijuana

Cronos Group

CRON

Production and marketing of medical marijuana with a large international focus

Terra Tech Corp.

CRON

Agricultural and hydroponic company that does some marijuana production

General Cannabis Corp.

OTC: CANN

Provides ancillary services to producers and businesses in the marijuana industry

Innovative Industrial Properties Inc.

IIPR

Medical marijuana real estate investment trust (REIT)

mCig Inc.

MCIG

Holding company that invests in a wide range of marijuana related activities

GrowGeneration Corp.

GRWG

Specialty store chain that focuses on hydroponics and organic growing

Solis Tek

SLTK

Indoor lighting equipment company with a focus on the cannabis industry

Kush Bottles

KSHB

Packing solutions and supplies for the cannabis industry

Scotts Miracle Gro Company

SMG

A traditional agriculture company making a big push into providing cannabis growing supplies

Final Thoughts

Legal cannabis presents unique and interesting opportunities for investors and entrepreneurs. Once it is legalized on a federal level, it will become a major part of the US economy. There is money to be made in this emerging industry.

What are your thoughts on investing in marijuana stocks or the marijuana industry as a whole?

Marijuana Stocks

Filed Under: Stocks
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.

About Mario Favela

Mario Favela is a freelance content writer living in Austin, Texas. He blogs at Moving To Texas. You can also follow him on Twitter and Google+.

Comments

  1. Jenny @ Frugal Guru Guide says

    May 19, 2013 at 11:07 pm

    I wouldn’t quite say that it’s a matter of time. I’m in the wait-and-see boat for this one. What causes more harm, making marijuana illegal or legalizing it? In the Netherlands, legalization caused some serious issues and drastically increased to usage among people under 18 and marijuana-related property crimes. There is also VERY good evidence now of marijuana causing schizophrenia in the genetically predisposed (an association was long known, but many thought that schizophrenics were just self-treating–it’s now known that this is NOT the case). If that happens here, the sentiment supporting universal legalization will evaporate rapidly. That said, I hope the Fed steps back and lets these states be test cases for the rest of the country. It would be good to know what the least-bad choice would be.

    I wouldn’t invest in it right now, though, even if I weren’t opposed to it on the same grounds that I’m opposed to investing in tobacco. The feds can swoop in at any moment and seize anything.

    Reply
  2. Mario Favela says

    May 21, 2013 at 8:08 pm

    The trend is obviously moving towards decriminalization…I do agree that the feds may flex their muscles in the meantime.

    But once the federal government figures out they can make more money off taxing weed than they can off of perpetuating the “war on drugs”….then game over.

    Reply
  3. jody says

    December 6, 2013 at 7:58 pm

    I never thought about this being something to invest in. I think you’re right. It would be a good thing to invest in. Thanks for the list of places to buy.

    Reply
  4. randyfulgham says

    December 7, 2013 at 8:55 am

    i would invest in this if i had extra money–but when your disability its hard to save money..nice post!!

    Reply
  5. Sam says

    November 5, 2014 at 5:21 pm

    Getting in on the marijuana industry now is like getting in on the dotcom industry in the early 2000’s: high risk high reward. All too often people wait until everyone else is making money and then decide to start educating themselves. By then its too late.

    You don’t have to start investing now, but you should definitely start educating yourself so when it comes time to buy you know what to do rather than trying to listen to 100 people tell you how to invest.

    If you want to monitor the daily trading of stocks check out the marijuana index
    http://marijuanaindex.org

    Don’t let this amazing opportunity pass you by. And don’t just jump in because of the hype.

    Reply
  6. Ryan says

    May 29, 2015 at 2:03 pm

    Yes, now is the perfect time to invest in marijuana.

    The index has bottomed and there is slow accumulation again. The hype has temporarily washed away. Come 2016 there will be several states with legalization ballots again, including California, the world’s 7th largest economy. The possibility stands that 1/5 of the US will adopt legal marijuana stance by the end of those 2016 ballots. It will undoubtedly be a topic of debate for the presidential election as well. Considering several polls have indicated that popular support has now tipped in national favor of legalization, it will be a delicate issue in the campaign.

    What’s important is that one doesn’t blindly put money into a pot penny stock. It’s almost inevitable that most of them will rise again regardless but there are some that are far superior to others in regards to share structure, financing, operations, and etc. If one does the research, I believe he/she will be rewarded handsomely come 2016.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


  • Popular Posts

    • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
    • Side Hustle Ideas: 50+ Ways To Make Money Fast
    • 30 Passive Income Ideas You Can Use to Build Real Wealth
    • Secret Ways To Get Student Loan Forgiveness
    • Top Student Loan Scams
    • The Best Investing Blogs Of 2019 (and more great reads)
    • The Top Ways To Get Student Loan Forgiveness
    • 5 Personal Finance Habits That Will Make You Rich
    • The Full List Of Student Loan Forgiveness Programs By State
    • FedLoan Servicing – The Worst Student Loan Servicer
  • Fun Resources

    • The College Investor Audio Show Podcast
    • Student Loan Debt Movement
    • 2019 Side Hustlin’ Student Scholarship Finalists
    • Online Brokerage Comparison Tool – Find The Best Stock Broker For You
    • The Full List Of Student Loan Refinancing Companies
    • Tax Help Center
    • Daily Investing Tips
  • Ultimate Guides

    • The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans
    • The Full List Of Student Loan Forgiveness Programs By State
    • Student Loan And Financial Aid Programs By State
    • The Ultimate IRA Contribution Guide
    • The Ultimate Guide to Saving For Retirement
    • The Ultimate College Internship Guide

Search

Credit Cards

  • The Top 10 Best Rewards Credit Cards
  • The Top 10 Cash Back Credit Cards
  • The Best Credit Cards To Maximize Travel Rewards
  • The Best Travel Credit Card Reward Strategy
  • Top Small Business Credit Cards
  • Best Balance Transfer Cards
  • Best Student Credit Cards

Banking

  • The Best Free Checking Accounts For December 2019
  • The Best Online Banks For Your Money In 2019
  • The Best Bank CD Rates Of December 2019 (updated daily)
  • Top 10 Best Money Market Accounts For December 2019 (Updated!)
  • 10 Best High Yield Savings Accounts Of December 2019 (Rates Updated Daily)
  • The Best Checking and Saving Account Bank Bonus Offers

Student Loans

  • The 10 Best Places To Refinance Student Loans In December 2019
  • Best Private Student Loans To Pay For College In December 2019
  • How To Find The Best Student Loans And Rates In 2019

Investing

  • Best Online Stock Brokers In 2019 (According To Readers)
  • The Best Places To Open An HSA (Health Savings Account)
  • The Top Five Best Investing Apps That Let You Invest For Free In 2019
  • How To Buy Stocks Online For Free

Insurance

  • The Top 10 Online Life Insurance Companies
  • The Ultimate Guide To Renters Insurance – Everything You Need To Know
  • The Cheapest Car Insurance For College Students
The College Investor

At The College Investor, we are deeply committed to helping you make more money by getting out of student loan debt and starting to invest to build wealth.

 

COPYRIGHT © 2009 – 2019 THE COLLEGE INVESTOR

Guides And Resources

  • The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans
  • Student Loan Forgiveness Programs By State
  • Best Student Loan Refinancing Companies
  • 30 Passive Income Ideas You Can Use to Build Real Wealth
  • 80 Different Ways To Get Student Loan Forgiveness
  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

  • How We Make Money
  • Privacy Policy
  • Terms of Service
  • Archives
  • Advertise
  • Press Page