The main reason investors are betting big on marijuana stocks is growth.
There’s few opportunities you will have to invest in an industry that’s going to grow from less than $10 billion today to more than $50 billion in a few years and multiple times more than that over time.
There just aren’t many industries practically guaranteed to grow 40% or 50% growth.
That’s the kind of growth that propelled Amazon to the fourth largest company in the world in just 20 years after its founding.
But there’s another reason to buy marijuana stocks today.
One that plays a far greater role in both the short and long term prospects for marijuana stocks.
That is investors.
More specifically, investors attitude towards marijuana.
We talk a lot here about the importance of societal changes and the importance of shifting attitudes toward recreational and medicinal use marijuana being an essential precursor to legislative changes.
Well, investors’ attitude towards marijuana stocks is just as important as it is too stocks.
And that’s why a recent poll conducted by Yahoo and Marist discovered the most important thing about marijuana stocks you can find anywhere.
Deep in an article titled How a single dad turned weed bus tours into a $1.8 million business there’s a small line:
Most people don’t see weed as a worthwhile venture despite the economic opportunities: 72 percent of Americans would not be likely to invest in the marijuana business, according to the same Yahoo News/Marist Poll.
Think about that.
72% of American’s will not invest in marijuana.
That’s a huge amount. And just like attitudes to marijuana usage have changed, it will change too.
The way marijuana stocks are moving, it will change fast as well.
Investments are unlike anything else in the world in that the more they rise in price, the more investors want them.
Take a look at stocks.
When the market was bottoming in March 2009 a Gullup survey found 20% of investors thought stocks were a great long term investment.
After stocks nearly tripled in price over the next six years, the same Gallup survey found 35% of investors though stocks were a great long term investment.
It happened in gold too.
In 2011 when gold set a record high of $1900 an ounce Gallup found 34% of investors thought it was the best long term investment.
Gold went on to fall to less than $1100 an ounce over the next five years.
After gold prices 40% lower only 12% of investors thought it was the best long term investment.
The same will happen to marijuana stocks too.
A year ago it was crazy to invest in marijuana stocks.
Today about one in four investors would consider investing in marijuana stocks according to that Yahoo/Marist poll.
Another year or two of gains will make marijuana stocks fully mainstream.
If you want to the biggest gains, you’ve got to go against the crowd.
This survey shows the “crowd” still hasn’t moved anywhere near marijuana stocks just yet.
The Seed Investor