The smartest people in the room are all investing in cannabis…

There’s a saying that if you’re the smartest person in the room, you need to go to another room. As an investor, you aren’t going to learn anything if you know more than everyone else you normally interact with.

If you’re looking for that room of super smart and well-connected people who are betting on the next big thing, chances are, those people are investing in cannabis.

For example, Peter Thiel was a co-founder of PayPal and then sold it to eBay for $1.5 billion. He was also Facebook‘s first outside investor and sold the majority of his $500,000 stake for over $1 billion. After all that success in tech, Thiel’s Founder’s Fund became the first institutional fund to invest in a cannabis company back in 2015.

Or how about Josh Kushner, the brother of Jared Kushner (President Donald Trump‘s son-in-law). As of 2016, the Kushner family had an estimated net worth of $1.8 billion.

Despite that significant wealth, Josh wants to make a name of his own and started the venture capital firm Thrive Capital Management.

Back in August, Thrive Capital led a $35 million funding round for LeafLink, a marketplace for wholesale buyers and sellers of cannabis.

Those are just two examples, but one thing is crystal clear.

The smartest and most well-connected people in the room are going all-in on cannabis…

The Time to Buy Is Now

If you look at who is buying cannabis stocks right now, it’s good company to keep.

According to a November 19 filing, Altria Group Inc. (NYSE: MO) bought more than 4 million shares of Cronos Group Inc. (Nasdaq: CRON).

This is an investment that suggests Altria sees Cronos trading at a discount to where the stock price will be, and it’s also an investment that will give Cronos access to capital to achieve results sooner rather than later.

Jim Simons, a billionaire money manager, added to two existing cannabis positions and opened four positions.

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Two of the new positions were Canopy Growth Corp. (NYSE: CGC) and Hexo Corp. (NYSE: HEXO). Simons’ fund bought over 500,000 shares of CGC in Q3 and 35,000 shares of HEXO.

And finally, banking analysts are offering more bullish outlooks.

Analysts at Bank of America believe that Canopy Growth has been oversold, and they believe that at these prices, Canopy is an attractive long-term investment. They see Canopy more likely to meet or exceed expectations now and, while it’s taken a little longer than we have liked, Canopy should soon have a permanent CEO to steer the ship in the right direction.

Vivien Azer of Cowen Inc. (Nasdaq: COWN) went as far as to even increase her projections. Originally, she thought the U.S. cannabis industry would be worth $80 billion by 2030. She’s upped that projection to $85 billion.

We know how the story ends, and we are on the right side of history before cannabis legalization takes the U.S. by storm on November 3, 2020.

Take care,

Greg Miller

Executive Director, National Institute for Cannabis Investors

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Comments

9 responses to “Why Billionaires Are Getting Ahead of the Cannabis Gold Rush”

  1. So, as if all of the bad press about the cannabis market wasn’t enough, now the FDA comes out saying that CBD has the potential to do harm. Well thank you thank you thank you FDA because all of our investments haven’t dropped enough already right? Ya know what man it’s just not fair to print something like that!!!! The media could have worded that headline differently and they chose not to so what does that tell you? Hey FDA I have one for you: Do you know what else has the potential to do harm to humans? Answer: Every single drug that the FDA has ever approved also has the potential to do harm to people. So why don’t we hold off on the CBD dramatics for a while until the FDA can come out with a specific case of harm caused by CBD. It doesn’t matter now though the damage has already been done in the market just by putting out that headline!!!!! The perfect storm continues.

  2. so are you recommending CRON and what other new positions o n this beaten down market wil flourish..lets get members informed and set up…it has been disappointing…and we need a boost of confidence in NICI!

  3. Billiionaires are buying Canopy Growth Corporation at $20 in Q3 like you stated but it was recommended to us when it was $50. I guess that’s why the rich get richer and the small guy bagholds.

  4. Buy as much NICI recommended cannabis stock as you can afford. These stock are great quality at a discount price!!! BUY, BUY, BUY!!!!!!!!!!

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