The Beginners Guide to Investing in Cannabis
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What is cannabis?
Dumb question, right? Here are the basics and facts you must know if you are a newbie.
Cannabis is derived from the cannabis plant and is also known as marijuana. Cannabis has both recreational and medical purposes. Cannabis can be cooked in food, it can be vaped, and it can be smoked which is the most common way to consume cannabis. Cannabis has currently become legal as of 2018 in many different states such as California and Colorado. When cannabis is consumed by smoking it can give individuals a feeling of being high. This feeling of highness can change an individual's perception or cause them to have a heightened mood. Cannabis also has an appetite-stimulating effect. Cannabis is not only used for medical or recreational purposes but some individuals use cannabis for spiritual purposes as well. A poll was taken in 2013 and it is estimated that between 128 to 232 million people currently use cannabis.
How can I invest in weed?
The marijuana industry is growing rapidly in the United States. It increased slowly when medical marijuana gets legalized but now since the legalization of recreational marijuana is happening all across the United States this industry is on a quick rise and will definitely boom. The marijuana industry is currently growing so rapidly that the business world is comparing it to the gold rush of 1849. It is important for marijuana investors to remember that because it is such a new industry, this is a risky investment as a penny stock would be. The investment vehicles for marijuana are growers, dispensary owner, venture capitalist, and much more.
What is a grower?
If you make an investment to become a grower this can be very lucrative. The reason why is because if you grow marijuana this means you can supply all the dispensaries. This can also mean that you have the opportunity for supplying dispensaries out of the country as well. As the marijuana trend is picking up in the United States it is also picking up in the European countries as well. Being a marijuana grower is a professional career and you must know what you are doing. So if you can not grow yourself you can employ individuals such as master growers and hydroponic farmers to grow your crops for disbursement.
What is a dispensary?
A dispensary is a medical marijuana pharmacy but they also sell recreational marijuana for individuals 21 years and older. There are a lot of risks associated with opening and running a dispensary but if you overcome all the risk the rewards will be great. Marijuana dispensaries are also closely monitored by the federal government to ensure that marijuana is not being sold in any type of an illegal way. Marijuana dispensaries also sell accessories and edibles.
What about venture capitalists?
Individuals who have large amounts of wealth can become a venture capitalist in the marijuana industry. This means they themselves do not run the business but they may have a partner or make an investment into a marijuana business. The venture capitalist will own a part of the business if they are in a partnership and if they are not in a partnership they will own the entire business and hire employees to run the business.