[ad_1]
Marijuana is a hot topic right now! From the presidential candidates to the wealthiest Americans, everyone is talking about the sector. According to forecasts, the US marijuana market alone could reach $ 22 billion by 2022.
Buffett and the richest Americans discussed marijuana
Some of the opinions we are going to discuss have already been expressed. However, as marijuana is heating up, we decided to analyze the views again.
Berkshire Hathway of Warren Buffett has marked many areas. Will Buffett invest in marijuana stocks? The marijuana industry is booming. According to a Nasdaq article, global marijuana sales could rise from $ 9.7 billion in 2017 to $ 31.3 billion in 2022, according to data from Arcview Market Research and BDS Analytics.
Fears of recession have erupted. Therefore, we believe that the current scenario offers a huge opportunity to invest in the marijuana sector. The recession can not affect the marijuana industry because it is not cyclical. Read Can the cannabis industry be safe from recession? to learn more.
However, the cannabis industry is still in the development stage. Legal restrictions and regulations are a major obstacle. Currently, marijuana is not legal at the federal level. In addition, regulatory scandals have an impact on the share price of companies. Buffett usually only invests in companies that he understands. So, will he be interested in marijuana?
Buffett's point of view on Coca-Cola and cannabis
A report by Markets Insider said Buffett did not like the idea of Coca-Cola (KO) entering the cannabis business. "It would be a mistake for Coca-Cola to start trading marijuana – cannabis. They have a healthy image, which would be detrimental. "
Earlier this year, Coca-Cola planned to partner with Aurora Cannabis (ACB) to produce CBD-based drinks. Aurora Cannabis has gained 17.7% since the beginning of the year.
Vivien Azer, an analyst at Cowen, thinks Coca-Cola may miss a major opportunity. Currently, the CBD market is growing. The market could reach $ 16 billion by 2025. An article in the CCN said that Buffett's advice to Coca-Cola could be wrong.
We are in agreement! Presidential candidates want to legalize marijuana at the federal level. Constellation Brands (STZ) is already associated with Canopy Growth. With the growing acceptance of marijuana and marijuana products, the partnership between Coca-Cola and cannabis might not be a bad idea.
Bill Gates's thoughts on marijuana
In the past, Microsoft founder Bill Gates said the marijuana industry would grow. He advocated for the legalization of marijuana in his state of Washington in 2014. He approved that marijuana be tested at the state level at the outset, before making it a policy. national. Microsoft has partnered with Kind Financial, which supports the cannabis industry. According to CNBC, the partnership began in 2016.
Celebrities stimulate the cannabis industry
In addition to the presidential candidates and the wealthiest Americans, many celebrities are boosting the cannabis industry. This support helps cannabis become the mainstream.
Snoop Dogg is associated with Canopy Growth (CGC) (WEED) in 2016. Boxing heavyweight champion, Mike Tyson, also launched his own cannabis company in 2018. California has legalized recreational cannabis in 2018. Other celebrities such as Dan Bilzerian, Gene Simmons and Seth Rogen also have marijuana approved.
In April, an article by GreenFund indicated that celebrity endorsements could benefit the industry and de-stigmatize cannabis use. Celebrities could also encourage more research on medicinal and recreational applications of the plant.
The sector is gaining momentum
The cannabis sector suffered after the July scandals. CannTrust (CTST) was hit hard after breaking Health Canada regulations. The company's recent problems with the Ontario Cannabis Store have had an impact on the share price.
CannTrust has decreased by 61.4% since the beginning of the year. The stock fell by 20.8% in August. Curaleaf (CURLF) has also violated FDA regulations. As a result, the stock dropped 16% in August. HEXO (HEXO) has been involved in rumors of scandal. Until now, the stock has dropped by 3% in August.
The recent FBI investigation and the challenges posed by FDA regulations affected the industry in August. Cannabis is still not legal at the federal level. The presidential elections of 2020 are getting closer. We believe that cannabis will be hot again because of many Democratic candidates who support the legalization of marijuana and help with regulation. For more information, read the articles by Andrew Yang and Bernie Sanders on cannabis.
President Trump has not yet expressed his point of view on marijuana. We believe that he could use the legalization of marijuana as an essential weapon for his re-election campaign. Read President Trump: Is the legalization of marijuana an essential weapon? to learn more.
Jim Cramer, CNBC Member Crazy money host, think the cannabis is hot right now. In particular, he supported Canopy Growth and the Cronos group last week. This week, Cramer said he prefers Aphria and the Cronos group to grow the canopy.
Canopy Growth and the Cronos Group fell by 18.5% and 13.1% in August. The Aurora Cannabis (ACB) fell by 6.5%, while the Aphria (APHA) rose by 22.3%.
The cannabis industry is growing. However, cannabis is a high-risk industry. Regulation always poses a challenge. We suggest investors do a lot of research before considering any investment.
Stay tuned with us to learn more about the polls of the 2020 cannabis candidates.
[ad_2]
Source link