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 Time to Buy Is Now
If you look at who is buying cannabis stocks right now, it’s good company to keep.
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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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.
Executive Director, National Institute for Cannabis Investors
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9 responses to “Why Billionaires Are Getting Ahead of the Cannabis Gold Rush”
November 26 2019