## How to Invest in Marijuana Stocks Now
The marijuana industry is booming, and so is the number of marijuana stocks available to investors. With so many options to choose from, it can be difficult to know where to start. This guide will provide you with everything you need to know about investing in marijuana stocks, from the basics to the latest trends.
### What is marijuana?
Marijuana is a plant that has been used for centuries for its medicinal and recreational properties. The active ingredient in marijuana is THC (tetrahydrocannabinol), which is responsible for the plant’s psychoactive effects.
### What are marijuana stocks?
Marijuana stocks are stocks of companies that operate in the marijuana industry. These companies can be involved in any aspect of the industry, from cultivation and processing to distribution and retail.
### Why invest in marijuana stocks?
There are several reasons why investors may want to consider investing in marijuana stocks. First, the marijuana industry is growing rapidly. According to a report by Arcview Market Research, the global legal marijuana market is expected to reach $23 billion by 2020. This growth is being driven by the increasing legalization of marijuana in the United States and other countries.
Second, marijuana stocks have the potential to be very profitable. In 2018, the average return on investment in marijuana stocks was 33%. This compares favorably to the average return on investment in the S&P 500, which was 7%.
Finally, investing in marijuana stocks can help you to diversify your portfolio. Marijuana stocks are not correlated to the traditional stock market, so they can provide some downside protection in a market sell-off.
### How to invest in marijuana stocks
There are several ways to invest in marijuana stocks. You can buy shares of marijuana companies directly through a stockbroker. You can also invest in marijuana-focused exchange-traded funds (ETFs). ETFs are baskets of stocks that track a particular index or sector. There are several marijuana-focused ETFs available, including the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ).
### What to look for in a marijuana stock
When investing in marijuana stocks, it is important to do your research. Here are a few things to look for:
* **Strong financials.** The company should have a strong financial track record, with positive cash flow and earnings.
* **Experienced management team.** The company should have a management team with experience in the marijuana industry.
* **Clear regulatory strategy.** The company should have a clear strategy for dealing with the regulatory challenges that the marijuana industry faces.
* **Growth potential.** The company should have the potential for significant growth in the future.
### The risks of investing in marijuana stocks
There are also some risks associated with investing in marijuana stocks. These risks include:
* **Regulatory risk.** The marijuana industry is highly regulated, and the regulatory landscape is constantly changing. This can make it difficult for marijuana companies to operate profitably.
* **Competition.** The marijuana industry is becoming increasingly competitive, as more and more companies enter the market. This can make it difficult for marijuana companies to stand out from the crowd and achieve profitability.
* **Volatility.** Marijuana stocks are often volatile, and their prices can fluctuate significantly. This makes it important to invest only what you can afford to lose.
### Conclusion
Investing in marijuana stocks can be a lucrative opportunity, but it is important to do your research and understand the risks involved. By following the tips in this guide, you can increase your chances of making a successful investment in the marijuana industry.
## List of marijuana stocks
Here is a list of some of the most popular marijuana stocks:
* **Canopy Growth Corporation (CGC)**
* **Tilray, Inc. (TLRY)**
* **Aurora Cannabis Inc. (ACB)**
* **Cronos Group Inc. (CRON)**
* **GW Pharmaceuticals plc (GWPH)**
* **Aphria Inc. (APHA)**
* **MedMen Enterprises Inc. (MMEN)**
* **Cresco Labs Inc. (CRLBF)**
* **Green Thumb Industries Inc. (GTBIF)**
* **Trulieve Cannabis Corp. (TCNNF)**