Over the next decade, the global marijuana industry is expected to deliver huge growth potential. Following a year that saw worldwide licensed-store sales raised to $10.9 billion, projections from Arcview Market Research and BDS Analytics suggest that global weed sales could attain $40 billion by 2024, with most investment banks on Wall Street looking for anywhere from $50 billion to $200 billion in annual sales by 2029 or 2030.
This forecasted sudden rise in legal marijuana sales is why Wall Street and investors have been investing into cannabis stocks since the beginning of 2016. Even following four very rough months for bank of stocks since the beginning of April, the industry’s biggest names have risen by a quadruple-digit percentage in less than four years.
But success as a cannabis stock investor is different. That brings to main point about investing in marijuana stocks — namely, that there’s a four-letter word we are going to have to acquaint for succeeding as an investor in the cannabis space.
If we want to be successful as a cannabis investor, the four-letter word we need to become familiar with is “time.”
The marijuana industry is a “next-big-thing investment.” Sure, cannabis isn’t exactly innovative, given the fact that it’s a plant that’s been around for a long time. But it does have next-big-thing growth potential, as described by its potential ascent from $10.9 billion in global worldwide sales to as much as $200 billion in a decade’s time.
But the thing about wise investments is that investor expectations have, historically, always outrun the actual growth trajectories of these investments. Whether its about the rise of the internet, business-to-business commerce, decoding the human genome, 3D printing, blockchain technology, or a host of other perceived-to-be game-changing investment opportunities, the expectations of Wall Street and investors easily beaten the actual growth of these industries, at least in their early stages.
Another way to rephrase everything it can be said: The marijuana industry will need time to mature.