4 Cannabis Stocks You Can Trade On Any Budget

By Tahir Johnson

The cannabis industry is projected to produce over $24.5 billion in annual revenue in 2021. With that being said one of the most common themes that you hear driving people’s ambitions to get into the cannabis industry is the opportunity to build generational wealth. In reality though, the industry is mostly dominated by multistate operators with deep pockets while success stories of minority entrepreneurs like my friend Seun Adediji who have been able to crack the green ceiling to build multi million dollar cannabis businesses come few and far between. As the cannabis industry expands with 5 states having legalized cannabis in the 2020 election and a handful more discussing legalization in the near future as they look to restore budget deficits from pandemic related economic pressures there will be more opportunities for new businesses to emerge but I think it’s important to note that owning a dispensary or other plant touching businesses is not the only way to build wealth in the cannabis industry.

One of the best ways of creating wealth is through the stock market. In my opinion there are a number of reasons that cannabis stocks should be a part of your portfolio. One common question that I’m asked is “I see such and such stock is down, does that mean that it’s a bad investment?” Well the answer is it depends. Do you fundamentally believe that a company or industry it does business in will grow over time? If the answer is yes then it might be a good investment. One of the most important principles of investing is to buy low and sell high. Think of it as getting the opportunity to buy something on sale. For example, as of the market close on January 29, 2021 Curaleaf stock was at $13.30 per share but its 52 week low is $2.54 so that means that at some point over the past year you could have purchased the stock almost $10 cheaper per share than you can today.

Investing is a long term game. Of course there are anomalies like this week where we saw Gamestop stock rise over 3000% in a short period of time however I wouldn’t expect that either. While I personally saw my holdings in AMC stock up over 262% this week I know that type of growth is not sustainable long term. Historically speaking the average annual return of the stock market over the last 100 years is about 10%. While cannabis stocks have seen their share of volatility over the years in my opinion there are a number of reasons to allocate some of your investments to this sector. Among other things we are likely to see cannabis legalization in some form within the next few years which will likely contribute to appreciation and if you buy and hold these stocks you may be able to benefit from that growth. I’m not saying that you should go put all of your money in cannabis stocks but I believe it should be a part of your strategy.

Investing in cannabis operators that directly touch the plant isn’t the only way to put money into publicly traded cannabis businesses. There are a number of ancillary businesses that provide services or resources to the industry like technology, real estate, or agricultural supplies. Saving and investing is a critical aspect to building wealth and it's important that communities of color are armed with financial literacy to be prepared for the future.

Take a look at these, 4 cannabis stocks that you can buy on any budget using any of the many free trading apps available!

SCOTTS MIRACLE GROW Symbol: SMG

AKERNA CORP Symbol: KERN

SILVER SPIKE ACQUISITION CORP Symbol: SSPK

INNOVATIVE INDUSTRIAL PROPERTIES INC Symbol : IIPR

Head to my video "4 Cannabis Stocks That You Can Buy On Any Budget" that will teach you about these companies & much more!

Tahir Johnson is a cannabis industry entrepreneur, advocate and a former investment advisor. Follow @ tahdiddy on Instagram & Twitter for more cannabis and investing insights.

*This article is for educational purposes only and should not be considered investment advice.