When you structure risk in the right way, you give yourself a much better chance to strike it big.
I recently read the book An Economist Walks into a Brothel by Allison Schrager, and I encourage you to check it out.
Allison talks about how risk isn’t a bad word. Technically, a risk is just a future event with an uncertain outcome.
Not only are there ways to limit the downside of a risk, but patient investors could double, triple, or even quadruple their investments.
That’s what I want to talk about today.
Every one of our members has different goals. You may be looking to get in on an IPO that goes from $1 to $100, or you may be looking for a REIT that will pay you quarterly dividends for guaranteed income. It’s knowing those goals that will help you judge where to put your money.
I want to look more at taking the “right risks” in cannabis investing to maximize upside and limit downside.
In fact, I’m going to share with you a cannabis company that has to pay you by law, which is about as risk free as you can get…
How to Take the Right Risks
Innovative Industrial Properties is one way for risk-averse investors to get involved in cannabis investing.
Operating as a REIT, by law, the company has to pay out at least 90% of its income to shareholders. That means as long as IIPR is in business, they have to pay a dividend. The dividend is currently $2.40 per share.
No matter what, you get a payout from the company, and with a cannabis firm, you also get stock price appreciation, as you can see in the chart below.
You can learn more about IIPR with this free guide.
When looking at ways to limit your risk, Canopy Growth Corp. (NYSE: CGC) is another good starting point. With a war chest of $40 billion from Constellation Brands (NYSE: STZ), this company will be in business for a long time. It’s why I called it the “Microsoft of Cannabis.”
Canopy Growth is going to make a ton of money through acquisitions and innovation. You can’t call it a “risk-free trade,” but for every investor out there, it needs to be in your portfolio. Canopy is going to dominate everything that has to do with the cannabis market.
Now, as I said before, I feel the market tone is changing and investors have more of an appetite for risk. We should start seeing a turn, and that means cannabis stocks should have a good or even a great summer.
That also means now is the perfect time to look at new investments or adding to current positions for the future.
Profiting from Uncertainty
We all know cannabis and CBD are unstoppable markets, and I expect CBD sales to reach at least $2 billion this year.
However, until we reach the full normalization of cannabis, we are still in the stages where we’re betting on a positive outcome for an uncertain event. That’s okay, because that’s how you win big.
This sector of the cannabis market is growing so fast that mainstream names like Martha Stewart and Coca-Cola are jumping on board. To find out more information, click here now.
One of the areas to look at is how cannabis is grown. Our investments in companies based in the U.S. and Canada are perfectly fine for the long haul.
Eventually, though, cannabis is mostly going to be grown in Latin America because it’s inexpensive to grow and labor is cheap. That’s why, with our NICILytics investing tool, we’ve broken down companies by region, sub-sector, and a few other metrics to help you target additional investment opportunities.
Current Cannabis Investors Report Lifetime Members can access NICILytics right here.
Evaluating the risk, it’s still impossible to tell where or how cannabis will be grown in the future.
But these are two of the emerging trends that the market is moving towards.
You’re going to have to pay for an uncertain outcome, but when the risk starts to fade away and cannabis becomes a major export of Colombia or it’s grown in a lab, the rest of retail investors will start to buy in.
That will send your share prices higher because you had the foresight to know how the story ends.
Remember that risk isn’t a bad word.
With the right bets, you’ll be in a great position in the future. As always, remember to stay a tough and patient trader.
Executive Director, National Institute for Cannabis Investors
P.S. Right here, right now, you have a chance to take your cannabis investing to the next level – a move that could be the only way to grow your money fast in the cannabis market. You see, within our one-of-a-kind cannabis stock database, we’ve compiled all of the information you need on nearly every single cannabis stock in existence… publicly traded and startups alike. To find out how you can access what could be a millionaire-making “vault,” just go here now.
7 responses to “No Risk, No Reward”
June 28 2019