If patience isn’t yet a part of your cannabis investment strategy, then consider your plan incomplete. In the investing world, patience isn’t merely a virtue—it’s a survival skill.
On the contrary, we live in a time when instant results, convenience, and gratification on-demand is the new normal. Time is scarce, attention spans are short and expectations are higher than ever before. So surely it’s no surprise that many people are also impatient when it comes to investing, too.
But how exactly can patience impact investment opportunities, specifically in the cannabis industry?
Cannabis Investing Requires Time and Patience as the Market Grows and Evolves
Yes, the potential of the market is simply overwhelming. However, jumping into cannabis investing with heavy expectations for rapid returns, and little to no industry knowledge, can cloud even the most seasoned investors from seeing the bigger picture.
The stunning predicted growth of the worldwide marijuana industry is no secret; both Wall Street and individual investors have shown interest in this new cash crop since 2015. Plus industry projections, from Arcview Market Research and BDS Analytics, make it easy to see why cannabis is so popular. Reports estimate that global sales of marijuana will pass the $40 billion mark by 2024, less than five years from now. It’s also reported that 13 state markets will have eclipsed the $1 billion milestones in total annual spending on legal cannabis by the end of 2024—only three had done so by the end of 2018 (California, Colorado, and Washington).
By year’s end, the current global market is expected to exceed $16.9 billion, according to BDS Analytics. This is just five years after Colorado and Washington became the first U.S. states to begin legal cannabis sales in 2014. Still, none of this happened overnight. Time was, and is, the key factor driving the explosive growth of this market both nationally and globally.
What Does Patience Look Like to Potential Cannabis Investors?
Just like any emerging industry, technology or a new trend, marijuana is a work in progress. The market itself is still in its infancy and the industrial foundations are being built with each passing day. Since cannabis is also highly regulated, from seed to final product and laws vary, this particular market needs time to mature. That doesn’t mean that marijuana won’t perform as expected, it means that investors need to focus on the long-term potential of this exciting new sector. It’s also just as important to stay in the loop with what’s going on in the industry as much as possible.
As with any investment, learning about the product and the fluctuations of the market is key. In the cannabis industry, investors need to take it a step further. Educate yourself about cannabis and ways to invest. Get familiar with the laws in each state and keep tabs on any states primed for legalization. Embrace the unique journey that lies ahead for the industry—knowing that in five to ten year’s time it’s expected to be so much more than it is today. And, look to other legal markets for indications of what you can expect once the green rush is in full bloom.
Luckily, right now, the experiences of cannabis investors, buyers, regulators, and producers in Canada can provide some valuable insights.
Savvy Investors Watch Canada
Less than a year ago, recreational sales were legalized in Canada (in October 2018). Already, there is a considerable shortage of product to meet the overwhelming demand. While much of this can be chalked up to delays with the processing of applications for cannabis sellers, understanding its effect on the market can be useful. But more importantly, paying attention to how the Canadian market pivots to improve its processes can also teach investors a lot about what the future of full legalization might look like here in the states.
Investing in the Future
When you invest in any stock, you’re investing in the future of the product, brand or company— and there’s no area that the future matters more than in the emerging marijuana marketplace. Almost daily laws evolve, regulations change and new opportunities surface. So in many ways, investing in the future also means investing in yourself. Spending time, not just money, to work, learn, and better understand the potential of the market is an essential first step. Remember, in investing, fortune favors the patient. Or in other words, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” — Warren Buffet.
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About the Panther Group
The Panther Group is a cannabis venture capital advisory firm, operating since 2014. We consult with growth stage cannabis companies to maximize their digital advertising footprint achieve their strategic objectives.
We have also developed a vetted marketplace of cannabis investment deals along with an extensive network with tens of thousands of cannabis professionals and investors that span across more than 20 sectors of the cannabis industry.
We utilize this ecosystem to forge genuine connections between growth-stage cannabis companies looking for access to capital and seasoned investors. Learn more at thepanthergroup.co and find us on Linkedin.