Budding Business: Is Marijuana the Next Big Commodity to Invest In? | TigerDroppings.com

Posted byMessage
Tmacelroy12
LSU Fan
Houston
Member since Aug 2012
5489 posts

Budding Business: Is Marijuana the Next Big Commodity to Invest In?



LINK
quote:

One of the first things you discover when researching the nation's budding legal marijuana industry is the difference among the laws and regulations that govern it on the local, state and federal levels.

While Washington and Colorado voted to legalize recreational use of marijuana, three other states snuffed out cannabis policy changes at the ballot box in November. Some marijuana-legalization activists view the mixed results as a setback, but others are moving full steam ahead to decriminalize the drug.

"My phone has been ringing off the hook since about a week before the election," says Troy Dayton, CEO of The ArcView Group, a San Francisco-based advisory firm that connects investors and entrepreneurs in the cannabis industry. While he's the first to admit that opening a pot dispensary or becoming a grower is full of risk and uncertainty, he also says that with the right seed money, the upside is sky high."

I focus on the ancillary businesses -- the businesses that are surrounding the cannabis industry that don't actually touch cannabis and are federally legal," he says in the attached video. His contacts have included "everybody from entrepreneurs who are just interested in the sector and want to put $25,000 to $50,000 to work, all the way up to billionaires and venture capital funds that are looking to make investments."

Dayton explains there are three areas to invest in: Consumers, growers and retailers. Cities like Denver and Los Angeles literally have hundreds of so-called dispensaries up and running and a network of growers who supply them, yet it is still illegal under federal law. While this scares off some potential clients, Dayton says there's actually a silver lining to the uncertainty.

"It's really a unique opportunity for smaller businesses to make a play at it before the super big multinationals get in on it," he says, pointing to the slow pace at which laws are changing.

One example is the financial industry, which largely shuns pot growers and retailers and refuses to offer even basic banking or credit card services. It's a scenario Dayton rejects, but also wants to capitalize on.

"It's crazy that some banks are unwilling to do business with these legitimate [legal, licensed, regulated, taxed and highly profitable] businesses, but that's opening up opportunities for other people who want to try to solve that problem," he says.


I don't want any moral debates. I just want to get your take on it.

This also isn't me saying, go invest in this... you will regret it. I just think it's interesting.

This also takes into account the legalization of growing hemp.







Back to top
Share:
RonBurgundy
LSU Fan
Whale's Vagina(San Diego)
Member since Oct 2005
8917 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


quote:

I don't want any moral debates. I just want to get your take on it.

This also isn't me saying, go invest in this... you will regret it. I just think it's interesting.

This also takes into account the legalization of growing hemp.



I hate to start off with " I know a guy", but a friend of mine owns land in Missouri-he's a farmer/cattle man by trade and was thinking about selling some of his land up there with some hilly terrain. He was at some luncheon with a keynote Republican congressman who said do not sell the land until 3-4 years from now because the pot farmers are going to buy up all that land.

There is a very bright future for investing in pot.






Back to top
Swifty
LSU Fan
Member since May 2012
947 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


quote:

He was at some luncheon with a keynote Republican congressman who said do not sell the land until 3-4 years from now because the pot farmers are going to buy up all that land.


Interdasting. I really wish there was more talk like this. I don't have any interest in smoking a bunch of pot, but I think it will be extremely intersting to see the affect legalization will have on miro economies and at the macro level in this country.






Back to top
  Replies (0)
Putty
LSU Fan
Member since Oct 2003
21268 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


quote:

Budding Business: Is Marijuana the Next Big Commodity to Invest In?


I have to think the tobacco companies would have the inside track on producing this crop if they'd ever realize they should be pushing for legalization not against it.






Back to top
Tmacelroy12
LSU Fan
Houston
Member since Aug 2012
5489 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


quote:

I have to think the tobacco companies would have the inside track on producing this crop

I'm not too sure I agree with you. Commercial banks will not lend any business associated with weed because it is still illegal under federal law.

With that being said, it opens the gates to private investors and VCs to put a huge foot in the door before the major markets (tobacco as you pointed out) to walk in.

If it continues the way it is, and banks still won't lend to these businesses, it might be a smart idea to invest a little bit of your capital. Who knows what will happen.

I think there is so much room to grow here, it's a brand new industry with near-limitless demand. Hemp is so versatile that it would be something to easily make money on.

Now, will there be some barriers to enter markets because a lot of consumers already have such long relationships with their (paper) suppliers? Yes of course, but this is a long-horizon type scope.

I believe eventually, the public's view on marijuana and hemp will change from the taboo that it is seen by a mass of people to a mere acceptance. And with that new perspective, the doors will be open for massive amounts of growth.

Keep a wary eye on this, don't want to miss the boat before it sets sail






Back to top
  Replies (0)
buddhavista
Member since Jul 2012
3543 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


You can make this money in this business but its not a bootstrap thing.

You have to remember unless you know about cannabis growing, you are going to get schooled by pot nerds on the subject. They can grow quality. And while quantity counts for something, people around here pay extra for the good shite b.c they know its worth it.

2nd order plays are much better IMHO. I wouldn't touch direct investment, cause the feds can take everything if they want to.






Back to top
  Replies (0)
The Easter Bunny
Georgia Tech Fan
Minneapolis, MN
Member since Jan 2005
42145 posts

re: Budding Business: Is Marijuana the Next Big Commodity to Invest In?


quote:

I have to think the tobacco companies would have the inside track on producing this crop if they'd ever realize they should be pushing for legalization not against it.


Yeah, I hope Altria gets in on this once it is legal.






Back to top
  Replies (0)


Back to top