The No. 1 Mistake Marijuana Investors Are Making
The No. 1 Mistake Marijuana Investors Are Making by Justin Spittler – Casey Research
Early investors made an absolute fortune.
And all it took was a small investment.
If you put just $10,000 into this stock in 1970, your investment would now be worth $4.6 million.
That’s a return of 45,000%, or 18 times what the S&P 500 returned over the same period. That’s also more than IBM, Phillip Morris, and Coca-Cola returned over the same period.
Can you guess what company I’m talking about?
• If you said McDonald’s, give yourself a pat on the back…
McDonald’s is one of America’s most iconic companies.
It’s a household name. And yet, most people don’t understand the business at all.
They think it’s a fast food company. But it’s really a real estate company.
Even Ray Kroc, the founder of McDonald’s, admitted this…
We are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.
• McDonald’s doesn’t make money selling burgers and fries…
It makes money buying and renting real estate to its franchisees, often at a steep markup.
It’s a simple business model. But it works.
It’s why McDonald’s is one of the most dominant companies on the planet. It’s also why many early McDonald’s shareholders are sitting on fortunes today.
But don’t worry if you didn’t buy McDonald’s 50 years ago. Today, we have the chance to buy the “next McDonald’s.” And once again, this opportunity lies in an emerging industry that few investors understand.
• I’m talking about the legal marijuana market…
If you’ve been reading the Dispatch, you know marijuana legalization is sweeping across the country.
In November, five U.S. states voted to legalize marijuana outright. Twenty-nine states along with Washington, D.C. now let you use marijuana for either medical or recreational purposes.
It’s now only a matter of time before marijuana becomes legal nationwide.
This is good news for everyday Americans. It means they’ll have more freedom over what they put in their bodies. But it’s even better news for marijuana business owners.
And that’s because the legal marijuana market is booming.
• The legal marijuana market grew 30% last year…
That’s nine times faster than the entire U.S. economy grew in 2016. And this boom has only just begun.