How to Invest in Cannabis Stocks
- Research the company. Always start by researching the company or companies you’ll be investing in. Check SEC filings and other documents required by diverse regulatory agencies.
- Determine the amount to invest. As a rule of thumb, never invest more than you can afford to lose. ...
- Decide on your timeline. Deciding on when to buy and when to sell is crucial. Try and figure out what your thresholds are beforehand.
- Pick a broker. Once you’ve gone through the initial steps, you’ll be ready to actually buy your shares. ...
- Buy the stock. This step may sound self-explanatory, but it’s a bit more complex than it seems. ...
- Sell the stock. Once you feel you’ve generated enough returns from a stock, it’ll be time to sell. ...
- Check out Benzinga’s extensive cannabis coverage. Successful trading requires information and active engagement. What will help you achieve this? Benzinga’s Cannabis Newsdesk.
See more
Where can I buy Green Thumb Industries stock?
Our stock can be purchased by contacting a registered stock broker or through an online stock brokerage service for self-directed investors.
What platform can I buy Curaleaf stock?
Online brokers Currently, US investors can only purchase the Curaleaf stock over the counter (OTC), but many popular platforms like Robinhood don't allow buying and selling all stocks that trade over the counter. So, make sure your choice of an online broker can give you access to this particular marijuana company.
How do I invest in Trulieve?
Shares of Trulieve cannot be purchased directly from the company, however, stock can be purchased through brokerage firms. What is the ticker symbol for Trulieve? Trulieve is traded on the Canadian Securities Exchange (CSE) under the ticker symbol “TRUL” and on the OTCQX Best Market under the ticker "TCNNF".
How do I invest in Curlf?
Shares of CURLF can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
What is the price target for Curaleaf?
Stock Price TargetsHigh$25.00Median$12.29Low$8.00Average$13.88Current Price$5.18
Is Curaleaf publicly traded?
Curaleaf Holdings, Inc. is an American cannabis company publicly traded on the Canadian stock exchange. The company is headquartered in Wakefield, Massachusetts.
How much does it cost to buy stock in Trulieve?
What is Trulieve Cannabis' stock price today? One share of TCNNF stock can currently be purchased for approximately $11.51.
Is it smart to invest in medical Marijuanas?
Investing in the medical marijuana sector is relatively risky as long as cannabis remains federally illegal in the U.S. The plant's federal status also constrains the growth of the sector, and investors have no guarantee that the federal government will continue to allow states to treat cannabis as legal.
Is it smart to invest in Marijuanas stocks?
The cannabis industry is still in its early stages, and the market opportunities are enormous, especially as more U.S. states legalize cannabis. Investing in the stocks is a high-risk but potentially high-reward proposition. Keith Speights has positions in Innovative Industrial Properties.
Where can I find OTC stocks?
The easiest way to buy OTC stocks is to set up an account with an online brokerage that supports trading of them. However, not all online brokerages offer them. Some brokerages that do include Fidelity, TD Ameritrade, Charles Schwab, and Interactive Brokerages.
Is Curlf a buy or sell?
According to the issued ratings of 10 analysts in the last year, the consensus rating for Curaleaf stock is Moderate Buy based on the current 2 hold ratings and 8 buy ratings for CURLF.
Can I buy Gtbif on Robinhood?
While investors can't buy Green Thumb stock on Robinhood because it's a U.S.-based plant-touching company, the company has issued stock on the Canadian Securities Exchange and it also raises capital through debt offerings.
Is buying cannabis stocks legal?
While investing in marijuana companies could come with legal risks, this risk is minimal and it is unlikely that anyone investing in cannabis will...
What are the health benefits of cannabis?
There is much research required to establish the beneficial effects cannabis has on the human body and how the cannabinoids work. Only one drug – E...
Where is recreational cannabis legal (or most tolerated)?
Canada and Uruguay, having fully legalised recreational cannabis use. However, a number of other countries tolerate recreational use. In the US, pr...
What cannabis industry sectors are there?
The primary industry sectors are biotech, cultivation and retail. However, there are also a number of associated secondary sectors such as agricult...
What Are Cannabis Stocks?
Cannabis stocks are shares in companies that are growing cannabis for the medical and recreational markets and ancillary companies.
5 Reasons to Investing in Marijuana stocks
A further clarification rounds out the picture. The cannabis family is classified into either Indica or Sativa. The marijuana plant is a member of both but hemp is Sativa-only.
Top 10 Performing Cannabis Companies in 2019
The top 10 companies in the field (excuse the pun) ranked by market capitalisation are:
What to Know Before Investing in Cannabis
In order to be successful in trading commodities, we must first look at the industry as first and foremost a commodity business then we need to understand the base commodity product, which in this case is the marijuana plant.
Which Cannabis Stocks to Buy?
Before we delve deeper into the other side of our equation – the current value of cannabis businesses – we need to appreciate how investment from the alcohol and soft drinks companies is impacting valuations.
Other factors
For reasons of quality control and regulation, vertical integration from field (or greenhouse) to shop is a plus given where the industry is in its development. In terms of regulation US states such as Colorado mandate vertical integration of medical marijuana companies
Cannabis exchange traded funds to buy
And if you can’t decide on the stocks mentioned here then you could buy an exchange traded fund instead. ETFs physically or synthetically replicate an index or the price movement of a share of commodity.
Overview of the marijuana industry
Even though the cannabis industry is growing, there are only a few dozen publicly-traded players. And because Canada legalized recreational marijuana in 2017, many pot stocks are headquartered there. In general, cannabis companies are broken down into the following categories:
Ways to invest in marijuana stocks
There are two primary ways to invest: Buy shares of a cannabis-related company or invest in a fund that tracks this industry.
How marijuana stocks fit in your portfolio
You may already be investing in marijuana stocks without realizing it, particularly if your portfolio includes any index funds that track small-cap stocks. For example, Scotts Miracle-Gro is included in more than 150 ETFs, while Tilray is a member of nearly 20, according to ETF.com.
How to buy marijuana stocks
If you are comfortable with the associated risks, it’s relatively easy to invest in this slice of the stock market. You must first open an online brokerage account, then find the specific pot stocks (or funds) that you’re interested in buying. You will want to consider how these investments fit into a well-diversified portfolio.
Here are seven steps to investing in the high-flying cannabis industry
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
3. Understand the risks of investing in the marijuana industry
Investing in any type of asset comes with some degree of risk. Investing in marijuana stocks is associated with additional specific risks that you should clearly understand:
5. Evaluate the top cannabis stocks and ETFs
Now for the fun part — digging into the top marijuana companies. You might also want to check out marijuana-focused exchange-traded funds (ETFs).
6. Invest in your favorite cannabis companies
Investing in marijuana companies in not right for everyone. For some, particularly conservative investors, the best approach is to avoid these types of stocks entirely. Only investors who understand and can tolerate high levels of risk should add cannabis companies to their portfolios.
7. Monitor changing marijuana industry dynamics
While investors are generally advised to take a long-term view when buying stocks, the dynamics of the marijuana industry are rapidly changing. The criteria you should use today to make a stock-buying decision could be dramatically different in just a few months.
Where do you buy marijuana stocks?
You can purchase cannabis stocks on the two major stock markets in the U.S.: the NYSE and NASDAQ. Cannabis stocks are also trading on the major stock market in Canada, called the Canadian Securities Exchange, or CSE for short.
How to choose marijuana stocks to buy
There are lots of marijuana stocks to choose from. But how can you know which ones you should put your money into? Here’s what you should keep in mind as you decide:
Summary
In the end, you can and maybe even should buy marijuana stocks on a licensed and regulated official stock market exchange like the NYSE, NASDAQ, or CSE. That’s the best way to experiment with marijuana stocks.
Marijuana Stock Movers
Analyze marijuana stocks biggest gainers and losers before you invest.
The Over-the-Counter Issue
While multiple states in the U.S. have legalized cannabis for either recreational or medical uses, marijuana is still illegal at the federal level. Of course, this had made it more difficult for most companies to get listed on a mainstream exchange.
How to Hash out the Bad Weed Stocks
While it’s always recommended that retail investors do their own due diligence, going over hundreds of filings and corporate documents can be hard and time-consuming. And you probably don’t have access to the resources needed to make an informed assessment of a company.
Trading Around a Core
A process that has helped Brochstein perform well in his model portfolios is what he calls “trading around a core.” This strategy takes advantage of the inherent volatility in these stocks. You sell incrementally when the stocks are rallying or buy incrementally when the stocks are declining,” he explains.
Why marijuana stocks are unique and risky
A stock’s a stock, right? Definitionally, sure: You’re buying shares of ownership in a publicly traded company. But marijuana stocks carry some additional challenges and risks, including:
How to choose marijuana stocks
If you’re in a position to take on the kind of risk that comes with investing in marijuana stocks, be sure to know what you’re getting into.
Do pot stocks deserve a spot in your portfolio?
Just because you can buy cannabis stocks doesn’t mean you should. You’ll need to assess your investing goals, current holdings and how comfortable you are with the risks. Make sure you won’t need to touch any money you plan to invest in these stocks for at least five years — and don’t forget about their speculative nature.
Become a marijuana investor
You’ll need a brokerage account to buy marijuana stocks. You shouldn’t have trouble finding most of these stocks available among NerdWallet’s picks for the best brokers for penny stock trading. It takes about 15 minutes to open a brokerage account, a process that’s similar to setting up a checking or savings account.
Why Investors Should Buy Cannabis Stocks
Marijuana stock prices tumbled during the past few months as other growth stocks in the tech, gaming and electric vehicle sectors also dipped, says Timothy Seymour, founder of Seymour Asset Management in New York and portfolio manager of Amplify Seymour Cannabis ETF (ticker: CNBS ).
Marijuana Stocks Are Bargains
The top U.S cannabis companies that investors should consider adding to a portfolio include Curaleaf Holdings (CURLF), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), TerrAscend Corp. (TRSSF) and Trulieve Cannabis Corp. (TCNNF), according to Spatafora and Seymour.
How to Invest in Cannabis ETFs
Adding individual stocks is a better bet since the majority of cannabis ETFs are passively managed and only rebalance every quarter, resulting in serious drawbacks, Spatafora says.
