By Sam Wood
The Philadelphia Inquirer
WWR Article Summary (tl;dr) The Wall Street Journal compared 2018’s marijuana frenzy to 1997’s craze over the Internet. So what are some potential ways to invest? Columnist Sam Wood takes a look.
The Philadelphia Inquirer
In the annals of investor euphoria, marijuana will likely mark a high point.
Mirroring last year’s spike in crypto-currencies such as bitcoin, marijuana has emerged as 2018’s hot investment topic, and promises to engage investors from Wall Street to Main Street after Canada legalizes cannabis for adult use on Oct. 17.
The Wall Street Journal compared 2018’s marijuana frenzy to 1997’s craze over the Internet.
While expectations are prodigious, legal cannabis spending globally is expected to hit just $32 billion by 2022, concludes Arcview Group/BDS Analytics.
So the entire worldwide legal market, by that estimate, may reach only the size of 3M or ConocoPhillips.
Analysts with the Cowen Group forecast that legal marijuana will reap $75 billion by 2030.
With public companies’ stocks gyrating up and down, “it’s very important to do due diligence because revenues are more important than the number of press releases,” said Arcview’s John Downs.
For the high-net-worth crowd, opportunities include syndicates, private equity, and venture capital funds.
