
3 Successful Investors Share Their First Stock Buys of 2021
It's a new year. Here are some stocks that may soar in 2021.
The marijuana industry is expected to triple in the next five years -- and many investors are looking to profit.
As states and entire countries decriminalize or legalize cannabis and/or its components, there are loads of opportunities for entrepreneurs and existing companies.
But as in any nascent industry, there are also loads of risks and bad actors. Whether you're a first-time investor or a seasoned veteran, it pays to understand all of the moving parts.
This guide will get you up to speed quickly.
Follow these seven steps if you're thinking about buying cannabis stocks. The following is a summary, but we encourage you to read the entire article linked below for all the details.
1. Understand the types of marijuana products.
2. Know the different types of marijuana stocks.
3. Understand the risks of investing in marijuana stocks.
4. Know what to look for in a marijuana stock.
5. Evaluate the top marijuana stocks and exchange-traded funds (ETFs).
6. Invest carefully.
7. Monitor changing industry dynamics closely.
Read more: How to Invest in Marijuana Stocks (Note: includes a list of every major marijuana stock)
We just went step-by-step through how to invest in cannabis, but just because there's a trendy new sector with lots of press and potential growth doesn't mean you need to put your hard-earned money in it. After all, if you buy broad index funds, you're covered no matter what sector of the stock market does well.
Think through the pros and cons as you read on: Should You Invest in Marijuana Stocks?
One of the biggest variables in cannabis investing is to what extent marijuana will be decriminalized or legalized within the United States, both on a state-by-state basis and on a federal basis.
The link below provides a quick spin through what we've seen so far, from decriminalization efforts starting in 1973 to legalization efforts beginning in earnest in 1996 to the political signs of where we seem to be heading.
Read on: Timeline for Marijuana Legalization in the United States: How the Dominoes Are Falling
There's been tremendous interest in Canadian cannabis stocks, because on October 17, 2018, recreational use of marijuana became legal in Canada (it had been legalized on a medical basis since 2001).
Beyond consumption by Canadians, the upside thesis involves operations or distribution to other countries that have legalized or may legalize marijuana to various extents. This includes Germany and particularly the large market on Canada's southern border.
Read on: Everything You Need to Know About Investing in Canadian Marijuana Stocks
One of the difficulties in understanding the marijuana industry is the jargon. Fortunately, it's not too complicated once you get a handle on a few main terms.
Marijuana vs. cannabis
Cannabis is the scientific name of the plant (the genus that houses three species). For an investor's purposes, marijuana is synonymous with cannabis, as are more informal nicknames like pot, weed, ganja, dope, grass, 420, sticky icky, etc.
CBD vs. THC
Cannabis is made up of nearly 500 chemical constituents, including many dozens of cannabinoids (substances that act on the body's cannabinoid receptors).
The two most commercially relevant of these cannabinoids are delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD). Only THC is psychoactive (i.e., makes you high).
Hemp
Hemp is a strain of a species of cannabis with relatively low levels of THC and relatively high levels of CBD. It has many industrial uses like providing fibers to make rope and clothing.
It's a new year. Here are some stocks that may soar in 2021.
Will the new administration in Washington reduce this number to zero?
The state's marijuana industry was a barn burner right from the start, and the company was there to reap the rewards.
The cannabis company is aiming to shore up its balance sheet.
The popular arrangement will dilute shareholders again, however.
There are many different ways to profit from the sector's growth.
Investors could be in for high times.
The company's business transformation continues, with new layoffs confirmed.
And its merger with Tilray may only make things worse.
These pot growers are shattering their own revenue growth records.
If only things would change south of their border...
This Florida-based company is a powerhouse in its market, and well positioned to expand in other states.
The moves felt like an investor retreat from recent price rises.
Analysts say the marijuana company's solid second-quarter results bode well for investors.
But Stifel's neutral rating has not changed.
Could it have even more room to run?
The new beverages are produced and sold solely within the borders of Colorado.
From consumer packaged goods to beverages, there are plenty of big names that could benefit from the industry's rapid growth.
Investors who think so are counting on a big turnaround story.
Marijuana companies that can turn a substantial profit have been known to reward their investors handsomely.