Question of the Week
How can I invest in marijuana?
Happy Five-Minute Friday all!
I’ve had several of you ask me about investing in marijuana, whether through a dispensary, farming or as an additional side business. For my Forbes column, I profiled a guy that is changing they way we do that. Take a look!
On January 1, 2020, Illinois joined 11 other states and DC to legalize recreational marijuana. Personally, I’ve never been a huge fan of weed, except for the occasional brownie or gummy. Yet on Friday, January 3, I waited for four hours to get my first sample of legal weed. I would have done it sooner, but for the first two days, I didn’t get there in time; the dispensary’s staff had already cut the line off.
My main thought while waiting? How much money are these people making anyway? The people shepherding us through the line dropped the stat that Illinois made over $5M in revenue in the first two days alone (and nearly $11M over the course of the first five days). The cannabis industry is expected to grow from $40 billion in 2020 to $80 billion in 2030.
Some of my clients have raised the idea of getting into the business whether through a dispensary, farming or consulting. Everyone wants to be a part of “The Green Rush,” but there’s still a lot of uncertainty and confusion on just how to do that.
Enter Seke Ballard. Seke is the Founder & CEO of Good Tree Capital, a financial technology firm that grants loans to vetted, licensed cannabis companies. It also allows people to invest in these loans as a way of using their funds to help out entrepreneurs and earn interest in the process. By using an innovative approach to evaluating credit risk, this Harvard Business School grad and his company are revolutionizing the way we all can invest in marijuana.
Quote of the Week
“To be a poor man is hard, but to be a poor race in a land of dollars is the very bottom of hardships. “ W.E.B. Du Bois
Task of the Week
Do your due diligence! Remember where you invest your money depends on its purpose. Even if you’re using play money to invest make sure to do your due diligence in the companies, you’re investing in. You can find out more about marijuana stocks and ETFs here.