Warren Buffett, also known as the Oracle of Omaha is one of the most successful investors of all time, and the third richest person in the world behind Jeff Bezos and Bill Gates. Buffett is well known for his investment principles, and you can follow his rules to make money investing in cannabis companies.
One of his most notable principles is "never invest in a business you cannot understand." Chances are if you're reading this you may know a thing or two about cannabis, but did you know that legal sales in the US are estimated to surpass $19 billion before the end of 2020? Investing in the stock market is one of the keys to building wealth, and putting money into this new industry can present a great opportunity to see your money grow.
I recently put out a YouTube video, 4 Cannabis Stocks You Can Buy on Cash App on Any Budget. If you're not already investing in the stock market, this is an easy way to get started because chances are you may already be using the app to transfer money. Cash App also offers no fee trading, and allows you to buy fractional shares. This means you won't be left out even if you're not balling like Buffett and all you have to start with is $1.
Another one of Warren Buffett's rules that you can follow to see a profit investing is to buy and hold stocks for the long term. As of the market close on January 21, 2020 shares of Canopy Growth, the largest cannabis company in the world sold at $24.15. To show you how this works in real life, consider this. Apple stock started selling on December 12, 1980 at $22 per share and if you had bought and held just one share it would have been worth $14,896 as of November 2019. The first iPod was released in October 23, 2001 and would have costed you $399 to purchase. If you had spent that amount on Apple stock instead and held it in your portfolio it would be worth over $62,000 today. Make sure you keep that in mind next time you visit your local dispensary.
Despite the fact that he's a multibillionaire one of Warren Buffett's top rules is to never stop learning. If you're passionate about investing in cannabis there is no shortage of conferences and events that you can attend to learn more about the industry. The National Cannabis Industry Association, will be having its Northeast Cannabis Business Conference (formerly Seed 2 Sale) in Boston, MA February 19-20 hosting 3,000+ industry experts and professionals. This will be one of the most incredible opportunities to network and get insight on East Coast cannabis markets and all facets of the industry that you can find.
Tahir Johnson is the East Coast Busines Development Manager at The National Cannabis Industry Association and a former investment advisor. You can text me at (202) 871-8793 or follow @tahdiddy on Instaram and Twitter for more cannabis and investing insights.
*This article reflects my personal is for educational purposes only and should not be considered investment advice. Opinions are my own and not the views of my employer