Doug Casey on the “Green Gold” Rush
Doug Casey on the “Green Gold” Rush by Justin Spittler – Casey Research
Justin’s note: As Dispatch readers know, marijuana legalization is starting to sweep the globe. And it’s providing everyday investors with the investment opportunity of a lifetime.
Recently, Doug Casey and International Man editor Nick Giambruno sat down to discuss how marijuana legalization would benefit not only investors… but society as a whole.
Nick Giambruno: Doug, I think cannabis will become a mainstream big business over the next few years. Legitimate companies are already working to commercialize this useful plant in various ways. What’s your take?
Doug Casey: I completely agree. Pot has been proven to have huge medical applications. I think there’s going to be a big recreational market too, at least the size of that for alcohol. And industrial applications for hemp, as a substitute for cotton in fabrics and wood pulp in paper, are gigantic. In fact, these applications will eventually dwarf other uses for hemp.
Nick Giambruno: Have you invested in the space?
Doug Casey: So far I’ve invested in two private cannabis companies that are going to go public.
I bought 500,000 shares of one, a couple of years ago, at a dime per share. I rarely put money in private start-ups—70% of the time they go to zero. In its last round, however, this company privately raised money at $2.25 per share. It looks like they’re going to bring it public at around $4, and if the market’s hot it will go to $10. Potentially a big hit. It has the potential to be a 100-bagger. You need one of those occasionally to compensate for the inevitable losses of putting money in private companies where you’re a minority shareholder.
At that point, I’ll have to figure out whether it’s a real business or just a fortunate speculation. But the big gains in cannabis stocks are still ahead of us. Most of the public companies are still far too small for institutional investors. The big money has yet to participate.
Nick Giambruno: That’s just a taste of the profit potential in this space. Of course, all of these lucrative profits used to be underground.