Cannabis Investing: What We've Learned and What to Look For in 2023
Cannabis investments have been steadily increasing throughout the years, and now that we have reached the start of a new year, it’s time to take a look back at what we have learned and to consider what investors should be looking out for in 2023. Premium investing services such as The Motley Fool are offering stock recommendations and portfolio guidance for those looking to get involved with cannabis investments.
When it comes to investing in cannabis, the biggest thing to look out for is the potential of the German market. Germany is the largest medical cannabis market in Europe, and with new regulations and policies set to be implemented in the near future, investors can capitalize on the opportunities that the market will offer.
For those who are looking for more of an income-oriented investment, dividend yields are a great option. Companies such as Canopy Growth (CGC) and Grow West MD are offering dividend yields of 7.1% and higher. This can be a great way to generate a steady stream of income while also taking advantage of the potential that cannabis stocks provide.
When it comes to investing in cannabis, venture capitalists are also looking to capitalize on the opportunities that the industry provides. With the new German cannabis market soon to be on the horizon, both foreign and domestic VCs are considering how to best leverage investment in the industry. Grow West MD, for example, is seeking to raise $20 million in capital to solidify future expansion plans in the industry.
Investors have also seen a surge in the stocks of Canadian cannabis companies, such as Canopy Growth, MedMen, and Aurora Cannabis. Investors poured money into the shares based on the potential of the companies, but it is important to remember that investing in cannabis can be risky.
One of the biggest challenges for cannabis investors is the fact that the U.S. federal prohibition on cannabis makes obtaining bank loans difficult. This can make it difficult for investors to access capital and can limit their ability to make investments.
For those who are considering investing in cannabis, there are a few things to keep in mind. It is important to diversify your investments, as cannabis stocks can be volatile and unpredictable. It is also important to do your research and to understand the risks associated with investing in the cannabis industry.
For those who are looking to invest in cannabis, there are a few options available. One of the most popular options is to purchase shares of publicly traded companies. Companies such as Canopy Growth, MedMen, and Aurora Cannabis are all publicly traded, and investors can buy shares of the company on the stock market.
Another option for investing in cannabis is to invest in private companies. Private companies are not listed on the stock market and are typically more risky investments. Nonetheless, investing in private companies can provide investors with a unique opportunity to capitalize on the potential of the industry.
Finally, there is the option of investing in cannabis-related ETFs. ETFs are a type of investment fund that track the performance of various cannabis-related companies. ETFs are a great way to diversify your investments and to spread out the risk.
But one Chicago-based brokerage firm has been helping investors invest and trade in cannabis stock since 2018 when MedMen went public. Gar Wood Securities offers a variety of services to their clients, including access to cannabis stock market trading, investment advice, and portfolio management services.
So, what have we learned as cannabis investors in 2022? What should we be focused on in 2023? Hope isn't a strategy or a 4 letter word. Diversifying investments, researching the industry, and understanding the risks are essential for investors looking to capitalize on the potential of the cannabis industry. With Germany set to open its market in the coming year, now is the perfect time to explore the options available to cannabis investors.
