Sunday, April 29, 2018

Yes! You Should have Invested in Weed Companies

It's no secret that Cannabis is going to be the next big industry in Canada since it's going to be legalized later this year. The reason why you're here is because you're wondering whether or not you should have invested (or should invest) in a Cannabis company. The short answer is YES!
However, even though it is the next big industry, it doesn't guarantee that you'll be making money from that investment.

I sometime hear people say that if they could go back in time they would invest in Microsoft, Facebook, Apple... It's easy for us to say these things today because of how successful all those companies are. The truth is, when they first started, nobody could predict how big those companies would become and many failed.

The same is true today with, the soon to be legalized industry of, Cannabis. There are many companies looking to hit the market hard but only a handful will succeed - and only one will be at the top. That is the risk that you need to mitigate.

Things for you to keep in mind:
  • Rule 1 of Investing: Never invest money that you need to live. This is not the time for you to refinance your house or buy stocks with money you should be paying your bills with.
  • It may be too late for you. Stocks will go higher in price the closer to the legalization date. The best time to invest was when the Prime Minister originally announce the plan to legalize it. You are loosing potential profit for each additional day you are waiting.
  • Seek professional advice.
  • Don't go in thinking you can beat the market.
  • Do you research on each Cannabis companies and pick the one that make the most sense to you. Some things you may want to include in your research are:
    • Look at who's leading the company. Has he lead any other companies successfully? Does he know the industry?
    • Look at their plans for the next 5 years. Do they have any partners?
    • Look at the type product they're making and their marketing plan.
    • Look at the amount of money they currently have invested in the company.
    • Look at the amount of money they have saved up.

No comments:

Post a Comment

Back to Top