Disclaimer: This post was reposted from RaisingBenjamin.com with the written permission of Carl Joseph-Black. Please subscribe to his weekly emails. I've been subscribed for a while now, and each email is golden. CJB is "A Law Student on a mission to make you wealtheir because being broke is trash."
It ain't fair. It ain't fair how so many people growing up in my neighborhood got busted for selling weed and got hit with mandatory minimums, did 5, 10, 15 or more years in prison. And now that it's legal those same folks can't make a legal dime off of it.
It's unfair that they can't even resell the weed legally in the same neighborhoods they were born and raised in. It's even more unfair that they can't even get a job in the industry, let alone many other industries, because they are convicted felons. It's also unfair that we, as a community who are most affected by this, don't know how to or can't find easy ways to invest in this. Today we take the power back.
First of all, shoutout to "The Cannabis Papers," which created the framework and foundation used to thoroughly understand marijuana on a scientific, medicinal, and recreational standpoint. Without reading this work I wouldn't have been able to understand the many uses of marijuana and how it can be monetized.
Lastly, (but definitely not least) I'd like to give a shoutout to Nelson Guerrero and the Cannabis Cultural Association (IG @CannaCultural) for sharing their insights on how the industry is growing and holding conferences so that black people can come through and get that money. But without further adieu here's what you came for.
How to Invest in the Booming Marijuana Industry
In order to win the game you have to understand how it's played.
Understanding the Crop
At the end of the day that is what marijuana is. A crop. Like tobacco it has to be grown in certain conditions that require certain seeds, watering requirements, lighting, shelf life, and so on. By understanding that it is a crop and its many types of uses, only then we can properly see how this product can be used and or sold.
Uses of Marijuana
The most popular and recognizable use of marijuana.
People smoke it, turn it into wax, and even reuse it into lotions and pain relief creams. There are hundreds of ways to use marijuana recreationally.
This can be smoked, taken in pill form, and other ways for health reasons that help cure:
Each state has different approved medicinal uses.
Industrial and Other Uses
Hemp is the industrial use of marijuana and can be used to make ropes, paints, but can also be used to make oils, food, paper, fuel, and many other consumer products.
Each of these products and uses are a way for you to make money. Whether you're creating it, or investing in it, these are ways you can make money.
The "Easy" Way
If you have extra money and want to invest in the industry, but don't necessarily have time to build a business, then the easiest way to get into the game is through stocks.
One of the issues with the marijuana industry is that the stocks connected to them can be kind of shady. Some companies have issued stock simply to pay their debts. Some have issued stock just to pay debts before they go out of business, leaving you with a loss in investment.
So one of the safest ways to buy stock and cash in on marijuana is by investing in companies who have many types of products that span many industries. This is why I carefully chose these companies for you to invest in. Each of these companies will be greatly impacted by the growth of the marijuana industry but will also grow because of their other product lines.
Scotts Miracle-Gro (SMG)
You can't grow plants without seeds, right? Nope, but the company that makes your lawn look nice is also the same company that will be creating the seeds for marijuana growers. As more marijuana companies are created and legalization grows, everyone and they momma gonna need seeds to grow weed. Scotts will be one of the largest players in that space and deservingly so.
Innovative Industrial Properties (IIPR)
In order to grow marijuana, some states have large plots of land to grow them. In many other states with limited acres, companies have been using warehouses to grow them. States like Massachusetts have recently legalized marijuana and this has led to a massive growth in real estate leases for warehouses.
Innovative Industrial Properties (IIPR) is a real estate investment trust that specializes in real estate particularly for marijuana growers. This company owns a large amount of real estate in Massachusetts and continues to grow their real estate portfolio in states like Colorado as well as Maryland, which is moving toward legalization. They are also retrofitting their warehouses to grow other types of holistic products.
GW Pharmaceuticals (GWPH)
This company is a medicinal marijuana company that uses cannabis to create medicines. They're best known for their product called Sativex, which is a spray that helps improve the conditions of individuals who suffer from Multiple Sclerosis (MS). They're currently working on a medicine that, if approved, would help children who suffer from epilepsy. They're one of the front runners in the cannabis healthcare industry.
Zynerba Pharmaceuticals (ZYNE)
Zynerba is also a medical marijuana company who creates medicines made from cannabis. Some of the illnesses their medicines help adults with are epilepsy, osteoarthritis, fragile x syndrome, fibromyalgia, and other types of nerve pain. They're also working on medicines that will help with PTSD, autoimmune disorders, chronic cancer pain, pain in general, and GI disorders.
These are some of the top stocks for the industry, in my opinion.
The More-Difficult-But-Very-Rewarding Way
Build Your Own Business
As medical and recreational marijuana use becomes more legal there will be a demand for more growers as well as more demands for the complimentary products involved with marijuana.
Rolling papers, bongs, bowls, trays and other products used to enjoy weed can be a business you can develop. Having a store front in your neighborhood is a great way to participate. But if the up front costs are too high for you, start an online store.
Currently, you can start one and sell these products by using Facebook ads to target areas that have legal recreational use of marijuana. It's a great way to start until your state approves it. If you'd love an example of something like this take a look at LiveStoner.com
If you love to smoke and really love it (and it's legal where you are), start a site featuring different strains, teach people what is best for them. Also, you can showcase the newest products on your blog.
If you know smokers in your area and are looking to make money, why not be the delivery person? Companies like Stemless are quickly becoming the Uber of weed by delivering it from dispensaries directly to the consumer.
As mentioned before, hemp (weed) can be converted into consumer products. Lotions, hair grease, and candles can be created from these products and you can use your effective marketing skills to move your units.
As more dispensaries and medical marijuana facilities open there will be a need for proper dumping of the waste caused by the products. This is a strong play for you to build a client base and be that person.
Whether you take this business and become a major player, or simply grow it enough to sell it to a company like Waste Management, money is here to be made, y'all. Don't think you're too good to do this type of work. 1-800 Got Junk? is a BILLION dollar company, y'all.
So here are some of the keys. Read it, research it, plan it, share it with the homies, and GET THIS WEED MONEY.
Feel free to reach out if you have any questions.
Keep stackin' that paper, y'all.