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Large, Medium and Small: The Goldilocks Way to Invest in Marijuana

  • October 9, 2019March 2, 2020

It’s hard not to run into someone these days who isn’t dabbling in medical cannabis.  There are those busy working parents of young children who just need some time to unwind and relax their minds and then there are seniors who are using CBD (Cannabidiol) with THC (tetrahydrocannabinol, a crystalline compound that is the main active ingredient of cannabis) to help ease the pains of arthritis and other ailments.  While Canada legalized cannabis in late 2018, it does still remain illegal under federal U.S. law.  There are currently 11 states in the U.S. where marijuana is legal for recreational use.

When it comes to investing, this industry could become a unique part of one’s asset allocation models within their portfolio. Clearly, there are substantial risks here still, but perhaps one way to be invested in this market, is to take the Goldilocks small, medium and large approach.  Investing in companies that cover a wider range of revenues and market capitalization (size of company) could potentially mitigate the risks of owning just one asset class.  Below is a list of companies that are somehow involved in cannabis (grouped within the size of their market capitalization along with their YTD performance as of 9/13/19).

Companies Involved In The Cannabis Industry

NAME

SYMBOL MARKET CAP YTD% PERFORMANCE
(as of 9/13/19)

Notes

SMALL (up to $2billion market cap)      
KushCo Holdings KSHB 325m -34.45 Packaging and Branding
Innovative Industrial Propoerties IIPR 1.1 Billion 101.21 Buying and Leasing industrial properties
MEDIUM ($2.0-$10billion)
Cronos Group Inc. (Canada) CRON 3.8 10.97 Altria Group owns half of the company
GW Pharmaceuticals GWPH 4.4 44.79
The Scotts Miracle Gro Company SMG 5.6 65.85 Hydroponics
Aurora Cannabis Inc.(Canada) ACB 6 19.96
Canopy Growth Corp (Canada) CGC 9.2 2.2 1st Canadian marijuana com. Constellation Brands owns 10%
LARGE ($10b+market cap)
Molson Coors Brewing TAP 11 1.8 International Beverage Co.
Constellation Brands STZ 34 26.89 International Beverage Co.
Heineken HEINY 62 22.22 International Beverage Co./Acquired Lagunitas
Abbvie ABBV 104 -23.52 Pharmaceutical Co.

This information is not a recommendation to purchase or sell the stocks listed.

If you have questions about how to invest in the cannabis industry, contact me for a free consultation.

inheritance investing with Dale WannenDale Wannen, MBA

Founder Sustainvest Asset Management

707-766-9480

dale@sustainvest.com

Sustainvest Asset Management is a fee-only registered Sonoma County investment advisory firm focused on sustainable and responsible (SRI) investing. We align our client’s investments with their goals and values through sustainable companies. Whether you are a new or seasoned investor, I offer a complimentary consultation on your investment strategy.

Clients include individuals, families, foundations and non-profits with financial planning services including investment management, 401k, 403b or IRA rollovers, trust accounts, non-profit asset management, retirement planning, fixed income investing and managing inheritances.