Over the past few years, the acreage for hemp production has expanded throughout the United States. According to the most well-known advocacy group for hemp, Vote Hemp, the number of acres that were used for hemp growth grew by over 50,000 between 2017 and 2018, increasing from 23,000 to 77,000. In 2019, there was a reported 230,000 acres being used to grow hemp, tripling the numbers from the year before.
This drastic rise in numbers not only serves as proof of the rising value of CBD products but also provides potential investment opportunities for people from all walks of life. In this blog, I will be discussing how you can begin investing, why you should invest in CBD, and some notable people who are investors in the industry themselves.
How to Invest
Investing in CBD is no different than investing in any other stock. Each comes with its own risks and rewards for the shareholder. Investing in a stock is easier than ever before with virtually everything being accessible at home from your fingertips. Here is a simple breakdown of how you can invest in CBD.
Choose Your Plan
Before investing any money into a stock, it is important to know your plan for doing so. You can choose to do it yourself, allowing you to make the decisions on every aspect of the process such as what to buy, when to sell, how much to sell for, and so on.
Alternatively, you can seek the guidance of an advisor who will invest money for you based on your individual goals. Both routes have their own pros and cons, so the decision is entirely up to you.
Open Your Investing Account
Now that you know how you’re going to invest, it is time to open an investing account. In order to do this, you will need to open an account with a brokerage firm. Lucky for you, there are several reliable brokers on the web, with TD Ameritrade and E-Trade being some of the best. Simply go to their site and follow the instructions for creating an account.
Create a Budget
It’s very important to set a budget for your stock investments. While you may want to invest a lot of money into one or more stocks, you don’t want to create a financial burden for yourself in your everyday life. This can be easily avoided by splitting your budget into two main sections: How much you need to begin investing, and how much of that you want to invest in certain stocks.
Begin Your Investments
Now that you have your account set up with a broker and your budget created, it is time to make your investments. There are countless strategies for doing this, so be sure to do your research before investing.
Why You Should Invest
Now that you know how to invest in CBD stocks, the question becomes “why?” The answer to this question could be different based on the individual, but almost everybody agrees that the primary goal behind investing in a company is to make money.
With the hemp industry still young in its evolution, it is easy to find start-up CBD companies that sell their shares anywhere under $10 a piece, at times even as low as a penny per share, known as penny stocks. These penny stocks allow people with a small budget to buy several shares per company. While these types of shares don’t typically result in a huge profit, they can be good beginner shares for people new to investing who want to try and make quick returns on their investments.
Other CBD companies have shown promise in their growth and still sell for a reasonable price. Since its inception six years ago, Canopy Growth Corporation (CGC) has shown a general upward trend with the price of their shares. Starting at around $3 per share at their beginnings, Canopy Growth Corp breached the $50 mark in 2018, and has since settled between the $35 and $20 range.
While this may not seem like much, the potential for profit is always there because the shares have stayed within a price range that compliments most investors’ wallets. When Apple sold their first public shares back in 1980 for $22 per share, nobody would have guessed that they would eventually be worth a couple hundred dollars per share.
Notable People Who Have Invested
If you’re still trying to decide on whether or not investing in CBD is right for you, take a look at a few notable people who have invested in the industry.
Since retiring in early 2019, the former New England Patriots tight end has sworn by CBD products. He claims that they help him deal with chronic pain from injuries that he sustained while playing in the NFL, and even invested with the company CBDMEDIC, who plans to launch its own consumable products line this year.
John Legend claims that he has believed in the benefits of CBD for a long time. He took his belief in it as a consumer to the next level by investing in a company named PlusCBD. He now helps to advocate for them, with a specific focus on their edible gummies.
Martha Stewart is known for giving people advice, so it comes as no surprise to learn that she is an advisor with the aforementioned company Canopy Growth Corporation. According to a press release from Canopy Growth, Stewart is working on connecting the bridge between the effectiveness of CBD and how it can improve the lives of others.
Investing in CBD comes with the same risks as investing in any other stock. While there is always potential for profit gain, there is also always the potential for profit loss. Due to the volatility of certain stocks, some companies can shut down unexpectedly.
Again, be sure to research a company before investing in them. While there are numerous reliable and safe companies to invest in, there is also many frauds out there who prey on the less informed. There are many ways to protect yourself from this, so make sure that you know the signs of fraud.
Becoming an investor can be very exciting. If it happens to be something that you are good at, you can make a good return from it. Luckily, there is many CBD investments that you can try your hand at, so what are you waiting for? Good luck, and happy investing!