If you’re thinking of investing in cannabis stocks, there’s never been a better time than right now. Cannabis is now legally available to buy all over Canada, and more and more US states are beginning to allow recreational use of marijuana. As more consumers begin to try marijuana for themselves, the legal marijuana market is expected to be worth 66.3 billion USD by 2025 according to estimates from Grand View Research.
Right now is a golden opportunity to invest some money into one of the world’s fastest-growing markets. However, as with any kind of investment, it’s important to pick the best cannabis stocks to avoid wasting your money. Playing the stock market is always tricky, but there are a few things you can look out for to ensure you make the best investments.
How to Pick the Best Cannabis Stocks
The cannabis industry is quickly growing, especially in Canada where the use of marijuana is legal for adults all over the country. There are now many major companies which focus on the growth, manufacturing, and selling of cannabis products. If you plan to invest, it helps to know how to pick the best cannabis stocks.
There are many things you can look for when investing in cannabis stocks. Of course, growers and sellers are in high demand, and companies which plan to expand their supply are likely to grow. You can also look out for companies which plan to make international expansions and merge with other cannabis companies- these are also likely to increase in value.
As with any kind of stock, you should look for how well stocks have performed both recently and long-term and make your own judgment. You may also want to seek advice from professional investment services on how to use your money. Although investing is always risky, there are many fast-growing companies in the cannabis industry which make for great investments.
Do Your Research
You should always do your research to pick the best cannabis stocks. There’s a lot of information freely available online which can help you make an informed decision on what to invest in.
A good place to start is by reading websites with the latest news on the cannabis industry. For instance, sites and newsletters like Marijuana Business Daily and The BCMI Cannabis Report can clue you in on the latest developments for cannabis businesses.
If you’re researching a certain stock, you can also simply look it up on Google and check out the latest news. You can also look them up on sites such as Market Watch and Bloomberg. These can give you all kinds of information on the history and the growth of the stock, as well as news articles which can help inform your decision.
You can also look into the company directly. Information on sales, profits, and developments is usually available online. You can also check out their websites to read more about their business plan and their plans for growth. Take note of all relevant information to help you make a more educated and informed decision on where to invest your money.
Diversify Your Portfolio
Another important rule for investing in stocks is to diversify your portfolio. As much as the cannabis industry is primed for growth, all kinds of things can affect the value of stocks and it’s always worth investing in multiple stocks to minimize your risk.
Investing in a few different valuable cannabis stocks is usually the best approach. That way, even if one of your investments loses its value, there’s always the possibility others will net you some profit. It can also help to invest in different kinds of cannabis stocks. For instance, while there are many growers and dispensaries to invest in, you could also invest in stocks in the fast-growing CBD industry.
The stock market can always be volatile. However, if you can find a few good stocks to invest in, you’ll be in a much better position to avoid overall losses and potentially make big profits.
Consider Both Major Stocks and Hidden Gems
When looking for cannabis stocks, most people mainly look at big players such as Aurora Cannabis and Canopy Growth Corp. These can make for great investments, especially as they have tons of potential to grow. However, you’ll also have to pay much more to invest in these major stocks.
A good approach is to look into both major stocks and hidden gems. Investing in companies which are estimated to keep growing is usually the safest bet. However, there are many cheaper stocks out there which still have huge potential to grow. If you do your research and find a hidden gem, it can make for a fantastic addition to your portfolio.
With the cannabis industry set for huge growth, there are plenty of companies with high potential. Look into all kinds of stocks and you might just find the perfect opportunity for a valuable cannabis stock investment.
What are the Best Cannabis Stocks in 2019?
If you’re looking for the best cannabis stocks to invest in, there are a few in particular which stand out.
Canopy Growth Corp. is currently the leading marijuana company in the world. The company has grown enormously over the past few years and received massive investments, such as the $5 billion investment from Constellation Brands. The stock price has decreased a little over the past month, but with Canopy’s plans to expand into the CBD market, produce cannabis drinks, and expand their operations inside and outside of Canada, it’s still a solid investment with huge potential.
Charlotte’s Web Holdings is another stock well worth looking into. The company is the leading producer of hemp-based CBD products. With the legality of these products even in places where cannabis is illegal, there’s always a huge potential for growth.
Aleafia Health is another one of the best cannabis stocks right now. With their plans to create grow farms and acquire Emblem, the company is set to make a big impact in the medical cannabis sector. With stocks at just 1.16 CAD, this could be a steal.
Investing is always risky, but these tips should help you pick the best cannabis stocks for a worthwhile investment. Remember to always do your research, consider multiple stocks, and look for stocks with high potential and you could make big earnings from the cannabis industry.