Companies like Aurora Cannabis started building the largest greenhouses in the country, all dedicated to growing bud for what everyone thought would be a massive new industry.
In the years since legalization, people have started to see shops pop up on what seems to be every street corner. Franchise and chain stores are growing, yet not everything is a guaranteed investment. Just ask Aurora. They shut down their massive Edmonton facility and paused their second greenhouse in Medicine Hate mid-construction. For some growers and suppliers, the bottom had fallen out.
Cannabis, like other industries, has a lot of potential for investors, and more than a few risks. So how do you know if the investment is worth it? Let’s look at some important advice for how to invest in the cannabis industry in a way that increases your chances of a return.
Tip #1: Do Your Research
Good news! By reading this, you are already on the right path. Make sure you look into any potential company. Check out any publicly-available reports and information to see if it makes sense. Once you have a sense for the company, what they have done and where they want to go, you will have a better idea of whether they’re worth your investment.
Tip #2: Talk to the Professionals
If you’re looking to invest in cannabis, it never hurts to talk to an investment professional who understands the industry. While you can (and should) do your own research, it is always a good idea to get the opinion of someone who understands the market. This can help you find potential opportunities and identify problems you may have missed in your own research.
Tip #3: Stay Informed
After you’ve done your research, you can probably start making investments. But don’t just put your money away and stop thinking about it. The cannabis industry is still subject to a lot of change, especially as sentiment and regulations south of the Canadian border change. Keep an eye on what’s happening in the industry so that you can adjust your investments, mitigate risks and come out on top.
Over three years since legalization, the cannabis industry has become similar to many other new industries that become mainstream. The initial rush has given way to more cautious and astute investments.