Photos: Four most important factors in a marijuana business investment
The inaugural Weedstock, a three-day conference at the Westin Hotel-Tabor Center, examined the investment opportunities that have opened up in the cannabis world. The event featured numerous securities-and-exchanges experts offering tips for prospective investors -- and many, many prospective investors looking for information and leads.
Photo by Amber Taufen Nigerian Nightmare at Weedstock. Display provided by Max Montrose.
At one breakout session, analyst Paul Cohen gave advice about what investors should look for when they're thinking about sinking money into a cannabis business. Cohen launched "Paul Cohen's Marijuana Hub" on his website (cohenresearch.com/MarijuanaHub.pdf) at the conference and claims to have made two million dollars through his cannabis investments thus far. Here are his four most important qualities in a solid cannabis investment.
Number 4: Disruptive technology
Cohen believes disruptive technology is a huge potential money-maker -- and that applies across any industry, he says. A disruptive technology is a game-changer, a product or technology that literally has the ability to change the entire market -- either the focus of the market or how it operates. Finding a company that has a disruptive technology is a large predictor of financial success for cannabis investors, he said, and anybody with a line on an organization with a disruptive technology up its sleeve would be well-advised to invest.
Number 3: Solidity of company
Cohen encourages potential investors to take a broader view of organizations -- and he said the solidity of a company has to do with the its organizational structure, its legality and the past experience of its owners and operators. Many investors might believe that it's impossible to find solidity of company in cannabis investments. After all, they're federally illegal, so the legality of any business of this type is iffy at best. But as many industry experts at the event pointed out, that's also why it's currently such a lucrative industry; only those investors willing to take the risk are going to reap the benefits.
Continue for more important factors in a marijuana business investment.