Investing in the marijuana industry
AnarchyMaster
Regular
No it's not what you think. Im not talkinga bout dealing mexican brick weed to local teenagers. I'm talkign about seriously investing in the future of the weed industry.
As you can see in this poll, its just a mater of time until weed is legal in the states.
http://www.gallup.com/poll/144086/new-high-americans-support-legalizing-marijuana.aspx
Those who can invest early in the domestic marijuana industry now is bound to make a fortune when (if) it is legalized. But the risk is that the Federal government will just clamp down harder.
If you invested in the weed industry, how and why would you do it?
As you can see in this poll, its just a mater of time until weed is legal in the states.
http://www.gallup.com/poll/144086/new-high-americans-support-legalizing-marijuana.aspx
Those who can invest early in the domestic marijuana industry now is bound to make a fortune when (if) it is legalized. But the risk is that the Federal government will just clamp down harder.
If you invested in the weed industry, how and why would you do it?
Comments
Basically, look for the Google or Starbucks of the pot industry
It's not like as soon as the poll reaches 51% then marijuana will be legalized. Fuck, that poll could say that 90% of Americans think it should be legalized but that wouldn't necessarily overrule the federal laws regarding marijuana.
In the 1930's, the public's approval for the prohibition of alcohol was only like 30.5%, yet prohibition was enacted regardless of all the dissenting opinions.
I just don't know, I'm fuckin sick of all the hype about legalizing weed. It seems like every year there's somebody saying, "Fuck yeah! It's gonna be legalized soon, dude!" And it never happens. Sure, you could say that we're making progress towards legalization, but just because states have allowed for medical marijuana doesn't mean that weed going to be legalized in the near future.
However in response to the OP, I would invest into the hemp paper industry and biomass production because, well, it's just a good fucking idea, that's why! :thumbsup:
I believe the only thing that will help make marijuana legal in the US is a strong national movement by the people. If we all get together and make enough noise for a long enough amount of time, I believe changes will be made.
We gotta get some politicians on our side, or try to elect in some new blood sympathetic to our cause. Probably won't happen though since our election system is broken. :sad:
Even the big cigarette companies like Philip Morris (sp?) and others have bought and set aside land in the areas in and surrounding Humboldt county and other counties which comprise the "Emerald Triangle", with some of the most favorable growing conditions in the United States.
EDIT: When it finally does go legal and some serious manufacturers get involved, we're going to see a myriad of new, cannabis based products that we wouldn't dream of today.
That's true enough, I guess. But the trends are pretty obvious. Most anti-marijuana people are age 50+. As they start to die out it's inevitable that most people in the country will be pro-weed, unless all the kids today form new beliefs when they get older. If you believe in the power of the populace then it might be a good long-term investment. Legalization at the states level is pretty inevitable.
It's the overbearing Federal government I'm most concerned about. Worst case scenario is that we get another "War on Drugs" like the 80's. Best case scenario marijuana is legalized nationwide. Probably what would happen is somewhere in between, like the laws staying on the books and the government simply not enforcing them.
But if it becomes obvious that it will be legalized sometime in the future, expect a gold-rush of investment. If you are well prepared you could easily ride that wave even if you don't have any pre-established investments.
Yeah, now that's what I'm talking about. What ideas for new cannabis products were you thinking of?
1. It won't be the current trend right away. Sure you may have some "local teenagers", but i doubt you can actually keep customers. Teenagers don't have a steady income.
2. Tobacco industries will sell marijuana cigs at a much cheaper price than a "brick" of marijuana. I guarantee you, the tobacco industries will monopolize the marijuana industry. Can you buy millions of bricks in bulk? Doubt it. In fact, i am almost certain Tobacco companies will(and most likely have) develop ways to sell and market an affordable product simply because they have the money, and you don't.
3. Smoking in general is heavily looked down upon as a society(in todays united states). I am not saying that smoking is bad, tell the people who create no smoking sections in restaurants and all that shit. Not many people to capitalize on.
TL : DR
Don't bother.
Wow, no offense but you don't seem to know a single thing about economics. Plus you didn't even read my first post very carefully. :facepalm:
It is however, worth investing in knowledge. How many companies now have the skill to grow a quality product? Apart from a few government research stations, not a lot.
OK, some companies grow plants in nutes, some use lights everynow and again, but their are not a lot of outfits growing hydro tomatoes under HPS. Their are also a lot of very skilled plantsmen out their, but they have no experience growing weed.
So there you have it.
They'd go to the netherlands and hire people from the companies that churn out designer strains.
Bam, experience.
No they would not. It would still be infanatly more proffitable for strain breeders to breed strains than it would be for them to grow a crop to smoke.
Have you seen the price of seeds?
A decent seed in the UK retails at £10-15 a seed. A plant produces hundreds of them.
That same plant, if not bred to seed would produce a few hundred £ worth of weed.
Agri-business 102 is next week, be sure to stop by.
Depending on how much they pay.
Either way, your assertion that a multi-billion dollar company couldn't figure out how to grow really good bud is silly.
As silly as that someone who has a nice easy life and is earning a shit load of money would move halfway around the world to work for some one else and have a whole lot more problems at work?
I also see no 'assertation' of mine stating a company could not figure out how to grow weed. Multi billion dollar or otherwise.
I was mearly stating that the best investment a layman could make in weed growing would be knowledge.
I see you also need a little lesson on business.
Let us say marijuana is legalised. Person X has been growing it on a medium scale for a number of years and produces a quality product. He already has a distrobution network set up and customers who both recognise and desire his product.
With a business plan (which any decent accountant could write if person X had no skill) loans could be gathered quite easily for the capital investment that is required. Little to no research is required and little outlay on advertising and networking in the early stages of the business.
Company Y, while it grows corn, or makes burgers, or cars or whatever, while having large capital reserves, has no experience and must first start by creating an in house business case, which would be started at a project stage. Even moving very quickly, we are talking one to three months before researchers into growing weed are employed.
After several months of research into growing methods and strains, they start to grow. That is if they are lucky. At the same time, they try to come up with a marketing plan based on what they think they know about the strains they are growing and about who they believe their potential cusomers are.
The growing would most likely be oversaw by a scientist or accademic and the people on the shop floor would be low skilled labour. In the end, the product, while marketed well, could not compete on ROI with person X's product.
All the while person X has got several crops to market, expanded his customer base with people who want to buy product and will buy what is on the market. When banks and investors see how his business is running, they cannot wait to get some money behind it. Rather than take the opporation down the McD's route, they stick with the business plan - sure, input costs may be higher, but their is no masive capital investment into R&D and marketing that has to be payed back, so the business can be run along its original lines.
When your Mcdonalds or Ford weed does reach market, market share is very low and they can only compete on price - sure, they could afford to make the product a loss leader for a number of years to capture market share, however, I do not buy based on price - the only people I know who do are kids who buy junk weed with pocket money.
Of course, any sensible government would not allow the legal sale of marijuana to those at least under 18 - I would hope it would be 21, so thats that market out of the window.
So in the end, you have cheap shitty macdonalds weed, or you have decent weed at a higher but still reasonable price with a very good share of the market.
Which would you smoke? Ask yourself that.
I am here all week if there is anything else you would like to learn about.
You have ran a business, I believe.
Come, I know you are clever than that. In the short term, seeds would be worth more than their weight in gold. Everyone would be trying to get in on the act.
I would be growing, you would and so would the little old lady down the street. It would be supply and demand, and once a price was set, it would stay there for a number of years. You know how much it costs to bring strains of seeds to market if the product is to be consumed? A lot, this is why the vast majority of old vegitable seed varieties cannot be bought as they are not licenced, they have to be swapped between growers. Google heritage seed varieties.
This is all before our old mate monsanto arives on the scene seeing a new cash cow to milk like fuck.
In the meantime, the old school breeders would have sold up, packed up and fucked off and bought islands in the south pacific, never having to work again.
Still not convinced?
http://en.wikipedia.org/wiki/Tulip_mania
This is an area in which I know what I am talking about.
What about that thought was difficult to keep concise?
When you are explaining things to a retard, you have to give as much detail as possible in the hope they understand.
It was an interesting read, but I still think that once bigger companies get involved, that's where the money will be and thats where a lot of experienced people are going to head.
That is not to say that those small men would not one day become the big guns and use their market position to dominate the market - that is how new markets have always worked.
However, if you look at it along the same lines as todays brewing industry, whilst it is dominated by 'big guns', the small man - the micro brewer - can always carve himself a very good share of market sector by having a quality product at a competative price.
I think if weed and its cultivation was legalised, it would always attract a premium price and as such would always be open to new, small origin start ups.
If you think in the past - specifically after the end of prohibition - the same companies came back and those with the money to buy into the market did, as the creation of the product was well researched and documented. Not only that, but during prohibition in the USA, a lot of companies were still producing for export only legally and so had an advantage when the domestic market was opened up.
With no one dominating the legal market at the moment (as it does not exist) it will be very intersting to see how businesses form and exist if it ever was to be legalised.
That and the fact they would always be competing agains the consumer - after all, someone that has a couple of square foot, a power outlet and a very small amount of time could grow more weed than they ever hope to smoke on a price that is much lower than it could be bought in the open market. The only reason not to is occasional use or apathy.
Makes you wonder, is this is why it is not legal, as the consumer can create at a price comparable to a market of scale?
One could argue that this is the same with beers, wines and spirits, but you would have to invest a lot more in equiptment, time and ingredients to produce a comparable beer to say guiness or budwieser than one would to grow high class weed.
You're making this more complicated than it needs to be, I think.
EDIT: Forgot about this.
Anyway, If the folks running Phillip Morris thought it was a decent idea, what's so ridiculous about it?
Wow...are you serious? There are plenty Americans living in the Netherlands growing pot over there. If they had they opportunity to come back over here and do the same thing, I'm sure a lot of them would jump at it.
This.
If it works out, good. If not, grow yams or some shit.