Straight Dope: Should I invest in marijuana?
“Should I invest in marijuana?” is a question I get a lot lately. It typically comes right after: “I’m trying to strike it rich and ”
People have been trying to strike it rich since the beginning of time. Time, on the other hand, sits by and scoffs at all the “get rich” schemes it’s seen in its days.
Answer: You should first ask yourself, “Do you have the stomach to invest at all?” If you’re ready to roll with the investing tide — record highs recently, with who knows WTF is looming on the horizon — then read on.
BTW: The S&P 500 has returned an average of 10 percent a year since 1928. What is that telling you? Read on anyway, it’ll be fun.
Investing in marijuana is still a large gamble, especially in our country. No need to go into details (Jeff Sessions), but north of the border, in Trump’s (not quite) favorite country Canada (eh?), marijuana is ramping up fast, and investment dollars are pouring in, including from major alcohol companies.
Yes, as an American, you can get in on that. Many companies are listed on U.S. stock exchanges. I just invested in the company receiving the most heat: Canopy Growth Corp., available on the NYSE under CGC. Am I planning to get rich? Doubtfully. But I have another strategy: the long game. See above, the part about how the S&P has returned 10 percent average per year. What is that telling you? Keep reading, for chrissakes, you made it this far.
I already had my get-rich moment. I invested in Facebook when it was $20 a share, when everyone told me I was a fool. This fool’s FB is now up well over 500 percent. Thusly, I kind of feel like I have hit my homerun, and now I typically try to hit singles and doubles. That means diversifying and holding on through good times/bad times (you know I’ve had my share).
Speaking of shares, I also recently bought Bitcoin. If I was to guess which industry would do better in the long run, Bitcoin or weed, my pick would be some kind of cryptocurrency associated with weed. I do think both are here to stay, but I have no clue who wins, so I balanced my investments in both. Note: Both investments make up a very small portion of my portfolio. For those wondering, I bought my Bitcoin on the Coinbase app I downloaded on my phone. Coinbase is known as being the safest, and most user-friendly, way to invest in crypto.
To summarize: Invest in the marijuana industry if it is not part of your Get Rich Scheme. And if you are diversified in other solid investments. Please consider not putting all your eggs in one basket. So many people have already done this with weed, and lost it all (SAD!).
I don’t want you to lose it all. I want you to realize, and accept, that most good things in life take time and cannot be achieved in the blink of an “I Dream of Jeannie” eye. And that especially includes making money.
Rick Cipes has written for over 40 publications including L.A. Times, Playboy and ESPN Magazine. We’d like to suggest visiting his 420 T-Shirt Collection at 420tsc.com.