The loosening of regulations against the sale and use of cannabis has drawn the attention of many investors seeking potential alternative assets. Legal sales of cannabis now total in the billions from the states around the country where the product is allowed. Experts expect the cannabis industry to reach $25 billion in sales by 2021. Investors do have potentially profitable options available.
Look for Stocks
For those that have considered alternative investing cannabis assets offer a variety of options. The potential places to look are marijuana growers that supply the dispensaries in their state. Growers are the first part of the market and the most important part of the industry. Without growers, the rest of the industry could not exist. Established farms and greenhouses have profited well over the last few years and continue to expand.
Cannabis biotech companies are another choice. The push for medical cannabis legalization has aroused the interest of many people around the world to the potential of this type of alternative medicine. Many pharmaceutical companies are anxious to become involved and are busy with research and development.
For other alternative assets cannabis investment possibilities include the industries supported by the interest in cannabis. Included in this group are companies that offer growing supplies and those that supply the gear and supplies, other than cannabis, for dispensaries.
Consider Private Investments
A private equity investment in a startup company within the cannabis industry is another way to profit. Many startups struggle to receive funding from banks because of the federal laws against the product. Since traditional funding is not a possibility, many new companies and established companies that want to expand need to rely on private investors.
Become Personally Involved
Anyone familiar with cannabis or interested in a more hands-on cannabis investment opportunity can look into local options as well if they are available in their area. An alternative private equity option could include investment in opening a dispensary with other like-minded investors. Review the possibility of opening a delivery service for local dispensaries or develop an Internet-based company that offers cannabis related information or merchandise other than the actual product itself.
Cannabis is no longer a hidden interest for people and more continue to look into the potential for profit as they watch the sales continue to increase. Any investment has risks and the cannabis industry is no different. Research every opportunity necessity before any money is spent to lower the risk.