To be successful, one simple trick is to mimic the routine of CEOs.
Jack Dorsey runs both Twitter Inc. and Square Inc., so if I wanted to improve my time management skills, I’d study his day-to-day routine.
For successful cannabis investing, we can take a closer look at how Canopy Growth Inc. (NYSE: CGC) CEO Bruce Linton invests.
Linton runs the biggest marijuana firm in the world, and he’s dominating the global industry.
Whether it’s investing $150 million in hemp productions in New York or partnering with Martha Stewart to make CBD pet products, he has his hands in everything.
Canopy is also sitting on $4 billion thanks to Constellation Brands (NYSE: STZ), and Linton is planning how to use that money to make his shareholders wealthier.
The CEO also recently told Barron’s that one of his key investments was a bottling plant for cannabis-infused beverages.
He plans to sell those in Canada by the end of the year.
I told you: He has his hands in everything.
And by following these three tips, you can mimic one of the richest and most successful men in cannabis…
Tip No. 1: Invest in the Future
One thing we’ve focused on lately is Latin America becoming the next big cannabis market. The climate offers ideal growing conditions at cheaper prices.
“In Canada, we made significant investments on a theory of how things [in the cannabis market] would open up,” Linton said in a statement. “Now we’re doing the same thing on a global basis. It’s capital allocation against a not-entirely certain model.”
Canopy has entered into a multi-year agreement with Procaps S.A.S, a Colombian-based company that develops and manufactures over-the-counter medications and nutritional supplements for international pharmaceutical companies.
Procaps exports products to more than 50 international markets, giving Canopy a global footprint. Linton’s company is licensed to produce over 13.6 million square feet of THC or CBD dominant cannabis, which is one of the largest licenses in the world.
Canopy has also sold its Spectrum Therapeutics products to medical patients in Chile and Brazil.
Tip No. 2: Identify “Backdoor” Opportunities
If people want to enjoy the cannabis plant, one thing investors should look at is how those people are going to do that.
A lot of first introductions to the cannabis industry will be through consuming a THC-infused brownie or a CBD-infused beverage.
“When you’re doing stuff at this scale you start to think about things like beverages, vape pens, and chewable very differently. There’s a whole range of things you’ll start to see in our product offering in 2019, and that should increase margins because you’re not really selling just cannabis – you’re taking it and putting it into something else, which usually means much better margins,” Linton told Business Insider.
Taking that a step further, one thing we’re watching here at the National Institute for Cannabis Investors is ancillary investments. Cannabis companies need farming and extraction equipment, and farming and extraction are going to be big markets thanks to the 2018 Farm Bill.
We should start to see more IPOs from these “backdoor” cannabis plays.
John Boehner was once “unalterably opposed” to cannabis legalization. To find out why he’s now “all in” on cannabis – and why you should be too – click here.
Tip No. 3: Find the Pack Leaders
“Until it goes through all the necessary protocol and programs, it’s just marijuana. You can call yourself a doctor, but until you go to school and achieve it, you’re not. A lot of people who have had a routine exposure to marijuana don’t see it as a potential medical disrupter – that it is until you kind of push their buttons,” Linton told Business Insider.
Cannabis can disrupt the medical industry, but it’s also going to disrupt the alcohol and wellness industries, too.
And finding the leaders of disruption can make you a lot of money.
There’s going to be the Coca-Cola of CBD-infused beverages. There’s going to be the Uber of cannabis delivery. Any other big business you can think of, the cannabis industry will have a similar counterpart.
That’s why, when you make an investment, you should think about the long term.
- What is the company focusing on?
- How is it going to build a global presence?
- Do you see the company sticking around for the next 10 years?
Even though we’ve seen the market tone improve and cannabis stock prices start to climb, some of these companies are undervalued and offer a great entry point right now.
I hope by seeing what Linton is focusing on, it will help you in your cannabis investing journey.
Tune in tomorrow before you start your holiday festivities, as we’ll talk about cannabis globalization spreading to Switzerland and France.
Executive Director, National Institute for Cannabis Investors
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16 responses to “Invest Like One of the Richest Men in Cannabis”
July 02 2019