It’s true. Cannabis is going to be the most important growth story of the next decade, and it is going to make a lot of people rich.
If you’ve been with me a while, you know I have a, shall we say, totally comprehensive approach to investment research.
That’s a fancy way of saying, “Before I put up a single dime, I like to go out and learn EVERYTHING there is to know about the company I’m about to own, or the sector I’m moving into.”
Marijuana’s no different.
It’s a sector I know from the street on up. I can do my analysis and run numbers from my terminal, but when it comes to cannabis, you can learn a lot just by walking around, talking, and listening to people.
Lots of different people…
I’ve talked to folks who use it for pain and a host of other medical ailments.
I’ve buttonholed doctors, lawyers, psychologists – and a lot of other people who are intimately familiar with the industry and the product.
I’ve hung out with recreational users and heard about how cannabis use has impacted their lives.
Believe it or not, I even spoke with a cop of more than 20 years. He told me that legalizing recreational marijuana would be one of the best things to ever happen to crime rates in the United States.
The lawman noted in over two decades in law enforcement, he had locked up hundreds of violent drunks and hard-core drug users… but never once had a problem with a violent “stoner,” a marijuana user.
I’m no cop, but the benefits of legalization are obvious to me, as they are to increasingly more Americans – even those in Congress.
Cannabis has medical uses: a sleep aid, a pain killer, an anti-nausea treatment, an appetite stimulant, and a whole lot of other benefits science is just beginning to discover.
It has potential to help the opioid abuse crisis that killed 42,000 Americans in 2016, and threatens the lives of millions more.
Legalized marijuana will lead to fewer nonviolent drug offenders and help ease conditions in our grossly overpopulated prisons.
State and local governments searching for funds to reduce pension deficits and provide essential services could very well raise truckloads of cash from the tax stream created by legalized pot.
So the question is not “Should we legalize marijuana at the federal level?” The question is: “Why the hell haven’t we done so already?”
The possibilities are simply too rich for anyone – individuals, governments, institutions – to pass up…
The Time to Move on Marijuana Is Right Now
As an investor – and a human being – I’m attracted by the enormous potential of something that can help a lot of people while providing needed tax dollars without the government dipping into my wallet without my consent.
But again, if you’ve been with me a while, you’ll know I’m a bargain shopper – no, make that “massive cheapskate” – when it comes to stocks. So can I personally justify paying the “top dollar” that the current crop of pot stocks provides?
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Eh, not quite.
I think more like a private equity guy than a venture capitalist. I might break out in hives if I tried to change.
I’m not saying there aren’t some dynamite pot stocks out there (like these four picks); it’s just not suited to my particular style.
The cannabis industry is very much in its startup and growth phases, and I don’t think I’d be any good at navigating that (unlike my colleague Greg Miller, who happens to be outstanding).
Instead, I’m taking this get-rich-slow approach to cannabis…
How to Ride the “Green Gold Rush”
Back in the 1840s, during the California Gold Rush, lots of people went into the hills looking for their fortune.
A few got legendarily, epically rich. Some did okay. And a lot of others went flat broke.
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There weren’t as many gold miner millionaires as there were those millionaires who followed the boom.
The people who sold the things that made the boom possible in the first place.
You know, the folks selling picks, shovels, food, liquor – and yes, even Levi Strauss’ denim pants – pretty much all got rich.
The people who owned general and dry goods stores got rich. So did the sea captains and railroad owners who transported the eager “forty-niners” to and from the gold fields.
The people who sold land and mining claims got ridiculously rich.
I want to be like those people. And I bet you do too…
I want to provide the services and goods that the cannabis industry is going to need to grow, package, and market its products.
I have a much higher probability of success than trying to predict who’s going to emerge as top dog in what is going to be a very competitive industry.
We might not emerge as rich as the top few companies, but we will be rich enough not to care…
Here Are Marijuana’s Big, Profitable Back Doors
I want to own the banks in the growing regions.
Once the SAFE Banking Act is passed and signed into law, then all the cash that is stuffed in safes, shoeboxes, briefcases, or high-cost payment accounts will be making its way safely into the banking system.
THREE STATES just legalized marijuana, and these three stocks could potentially see a 1,000% boost. Click here to learn more…
Banks with a strong presence in the most active growing regions and consumer markets are going to see rapid deposit growth and loan demand.
To capitalize on this, I like banks in heavily populated areas like southern California and the Interstate 95 corridor between Washington, D.C., and Boston; banks that already have strong business banking operations will also see an influx of business from the dispensaries and other cannabis and cannabis-adjacent businesses.
My Heatseekers readers following along with my recommendations own some of those banks already, and I’m always looking for more.
(Psst – you can learn how to get my Heatseekers research picks and plays right here.)
The backdoor and direct opportunities don’t stop at banks, though.
Once the Feds take weed off of the list of Schedule I drugs and the states can decide for themselves how they wish to regulate cannabis products, the green gold rush will really kick into gear.
There will be a flood of companies that want to raise capital, and the IPO calendar will contain more pot than a Grateful Dead concert.
As the industry matures and starts producing regular cash flows, we’ll see the companies turn to the high-yield bond market in addition to the equity market for capital.
That will provide a gold rush for investment bankers that have strong relationships in the industry – and for folks like you who own them.
His Winning Track Record Reveals Best Way to Beat This Volatile Market
2018 was one of the worst years for stocks since the 2008 financial crisis… but that didn’t faze Tim Melvin a bit.
He joined our team with an undefeated record (he was the ONLY guy in the industry we could find with one).
Coming in hot with 119 trades and 0 realized losses, he didn’t give a hoot what the market was doing. He was too busy making money.
And he’s finally decided to share his secrets with you.
He’s revealing his next trade recommendation on Monday morning. You don’t want to miss this.
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