Medical marijuana is a plant-based medicine from the Cannabis sativa or Cannabis indica species with three major active compounds: THC, CBD, and CBN. The health benefits of medical marijuana include relief from pain and muscle spasm, nausea associated with chemotherapy, and anorexia. In the last few years, medical marijuana has been legalised in many countries across the world. Its legalisation has created a great opportunity for investing in marijuana.
In 2019, cannabis companies took investors on a wild ride. When the first quarter ended, more than a dozen of the most successful marijuana stocks had gained at least 70%, and the hope was that by the end of the year, various cannabis stocks would move toward profitability. Millennials are fond of investing in medical marijuana. Five cannabis shares are among the 50 most-held companies, according to the digital investing app Robinhood. This is noteworthy as Robinhood’s average age of over 6 million members is 32, which means it is an excellent representation of what draws millennial investors’ interest.
Many options are available to investors across the world who interested in adding marijuana to their portfolios. They are able to buy equity shares in companies associated with cannabis that are traded publicly on an exchange. Another option is to buy a fund’s stock, giving access to many companies leading the way in this growing industry. Exchange-traded funds (ETFs) are an investment portfolio grouped into a fund listed on an exchange such as the Nasdaq or NYSE. The fund controls the securities within it and typically monitors an index – or group of assets reflecting part of an industry or theme of investment. If you invest in an ETF, within that ETF, you are actually buying small fractions of the firms. The proportion depends on the stock holding weights in that portfolio. In recent years, ETFs have become popular as they provide investors with the opportunity to invest in the success of a group of stocks without having to buy any single stock in the fund or pick single stocks. This not only saves time and research, but ETFs can also provide diversification, which is considered by many to be an important investment strategy.
The marijuana industry is expected to add 200,000 new jobs in the U.S. by 2020, according to New Frontier Data, which provides research on the cannabis market. Growth is expected for a long list of businesses, such as the cultivators and packagers of the plants, dispensaries for medical and recreational marijuana, not to mention companies creating products that use cannabis by-products called CBDs.
With so many profit opportunities arising from the legalisation of marijuana, it would be a pity if you didn’t take advantage of them. Add marijuana companies’ shares to your investment portfolio and grow your wealth with one of the most profitable assets in the global market right now.