How to invest in legal cannabis

How do you invest in the exponential cannabis market in the USA? Currently worth $5.4 billion, experts estimate it will reach $22 billion by 2020. A juicy market attracting investors and brokers. An economic boom comparable to that of the Net in the early 90s.

The stock market or weed

For the more modest investor, some companies use crowdfunding. A slightly different kind of crowdfunding, which allows you to become a shareholder in the company. Med-X, which owns the Marijuana Times media company, is offering people earning over €4,000 a year the chance to buy 700 shares for €400. For the time being, they are checking with their financing platform to see if the share is possible from France. An online chat is available if you'd like to find out more. (The guy answering looks a bit like a robot)

For the wealthier among us, other websites are available for investing. Sites such as Articviewgroups , The Wolf of Weed street, 420 Investor and Investincannabis.com specialize in the cannabis industry and represent firms working in the cannabis sector. To participate in their gold rush, you'll need to invest 10,000 minimum and skip the endless series of questions about your future investment, such as: do you want long-term or short-term profitability? Do you know the plant well? Have you invested before? An algorithm will then tell you where to invest.

Medical or recreational cannabis?

Medical cannabis has a clear advantage over recreational cannabis. The world's leading companies are already listed on the stock exchange. Companies such as GW Pharmaceuticals, Canada's Canopy Growth, Insys Therapeutic, Terra Tech and Medecine Man.

Recreational cannabis represents a bigger risk. First of all, it's still illegal in most American states, highly volatile and, above all, everyone wants to get in on the action. Market saturation in states like California and Colorado can nip a project in the bud. So we need to remain patient, and see which states legalize recreational cannabis, and study future regulations carefully, as they are numerous and complex. Eddie Miller, CEO of Investincannabis, says: «We've seen shares rise in value by 10,000% and others fall by 99% , that's the game.

By-products rather than the plant itself

Cheryl Shuman, manager of a cannabis club in Los Angeles, advises investing in cannabis products. Her advice as a consultant and her business acumen have earned her the name Cannabis Queen of Beverly hills. For her, derivatives are a safe and profitable long-term investment.

Here's a short list: Vaporizer, pipe and bong maker, self-cultivation fridge. Products to which we must add services: specialized marketing agencies, weed delivery companies, media, Massroots, infused drinks and hemp.

But then Cheryl, why not invest in the weed industry itself? If the federal government turns around and decides to ban cannabis, the states will have to follow suit. This risk factor presents, as in all gambling, a higher payoff for the investor. If the investor wants to invest money in a dispensary, he or she must make sure that everything complies with regulations.

Théo Caillart