The Best Cannabis Stocks of 2022. A Guide for the Novice 420 Investor | by Daniella Cressman | Feb, 2022

If you are a cannabis enthusiast with a keen interest in personal finance, look no further: Investing in Mary Jane stocks is a risky business, but you might reap very high rewards if you’re willing to put your hard-earned cash in some of these 420-friendly businesses.

The marijuana industry has several categories.

Recreational Marijuana

Recreational marijuana is for those Mary Jane enthusiasts who love a good puff late in the evening with friends or a quick edible in the morning before work: These products are purely for fun!

Medical Marijuana

Medical cannabis is an extremely profitable industry and one that many are turning to if they feel their needs are not being met in the area of conventional medicine.

While recreational cannabis is legal in quite a few states, it is illegal in many others. This means that you could get into trouble with the law, and, unfortunately, minorities often get punished far more severely than those who happen to be Caucasian.

This is part of the reason why there has been such a push for the legalization of recreational Mary Jane.

There are so many different elements of the cannabis industry: Growing it, distributing it, healing patients with it, and selling it all come to mind.

You’ll want to familiarize yourself with every type of marijuana organization so that you can support the ones you believe in with your hard-earned cash.

Cannabis Growers and Retailers

These are the companies that actually grow cannabis — usually in indoor facilities — and then proceed to distribute the end products to customers. A few of these sell medical or recreational herb (occasionally both).

Cannabis-focused Biotechnology Companies

These companies are solely focused on extracting cannabinoids from marijuana and creating innovative pharmaceutical drugs with them that could help a lot of people struggling with a wide array of mental illnesses ranging from dementia to bipolar disorder.

Ancillary Product and Service Providers

These organizations do not touch the actual plant, but they help other companies by providing them with the tools to grow marijuana, such as hydroponics, lighting systems, packaging materials, and management services.

There are quite a few companies standing out in the crowded marketplace that is the marijuana industry in 2022.

Trulieve Cannabis Corp (TCNNF)

Trulieve Cannabis Corp sells edibles, concentrates, and other products.

Trulieve Cannabis Corp is all about fostering a better world through promoting environmentalism, inclusivity, diversity, and advocacy:

• They grow, harvest, and produce cannabis in an eco-friendly manner that reduces their carbon footprint
• They support diversity and inclusion for all.
• They participate in advocacy for cannabis reform.

All in all, Trulieve Cannabis Corp is an organization that is truly wonderful in every sense of the word: They not only care about weed, but they consistently participate in efforts to conserve the environment and stand up against injustice in this world.

TCNNF does not currently pay a dividend.

The stock is selling for $26.31 per share at the moment and is currently on an upward trend.

Green Thumb Industries (GTI)

Green Thumb is all about empowering people by improving the health, happiness, and overall comfort of their community. They offer products geared towards social justice, a premium assorted line of flower to cater to your every need — whether those are medical or recreational! — and, of course, some products that are solely dedicated to your furry friends: Fido will be thrilled!

The bottom line is that this place is all about encouraging well-being on a profound level.

This stock is currently priced at $20.61 per share, and it is also on an upward trend, at least for the time being.

GTI does not currently pay a dividend on their stock, and they have openly said they do not intend to in the foreseeable future.

Jazz Pharmaceuticals (JAZZ)

This company’s mission statement says it all:

“Jazz Pharmaceuticals is a global biopharmaceutical company dedicated to bringing life-changing medicines to people with limited or no options, so they can live their lives more fully.”

They provide powerful medications containing cannabidiols to their patients. They are making waves in the healthcare industry while prioritizing ethics and honesty in everything that they do.

This stock is currently priced at $141.95 per share, and it is on a downward trend as of February 12, 2022, but, knowing the unpredictability of the market, that could change quite rapidly.

Jazz Pharmaceuticals does not currently pay a dividend on its stock.

GrowGeneration Corp (GRWG)

GrowGeneration Corp owns and operates gardening and retail hydroponic and organic gardening stores. It has nine distribution and retail locations in the following states:

• California
• Colorado
• Michigan
• Rhode Island
• Washington

This company is all about educating the public surrounding every facet of marijuana: They care deeply about the growing and harvesting process, and they are also advocates for social justice surrounding the illegality of possessing marijuana in many states, which affects minorities disproportionately due to the prevalence of corrupt police officers in this country.

GrowGeneration Corp’s stock does not pay a dividend. It is selling for $8.84 per share and is currently on a downward trend.

Village Farms International Inc. (VFF)

Village Farms is a wonderful and environmentally friendly company that distributes fresh produce to various grocery stores in North America.

It has locations in British Columbia and Texas.

This company prioritizes the conservation of our planet on many levels. Their production practices include the following:

• Less usage of water
• Less usage of land
• Fewer chemicals

These practices have improved our planet in a myriad of ways, including reducing carbon dioxide emissions, and we have Village Farms to thank for that!

“Our mission is simple — to improve life’s journey for the wellbeing of humankind, and the earth on which we live. This is no empty promise. It’s the mantra that we live by every day. For in the end, we are what we do.”

This is a company you can truly put your faith in because they stand by their values through all phases of each process.

This stock is currently selling for a mere $5.38 per share. It does not pay a dividend.

Note: Dividend stocks give you a small yield that you can choose to have deposited straight into your bank account or reinvest. For instance, the S&P 500 offers an annual average return of 4.29%.

The coronavirus has affected us all in many ways, and, unfortunately, more and more variants are still running rampant. Tragically, many people have lost loved ones or been terminated from their jobs as a result of this potentially fatal virus.

That being said, folks have become increasingly aware of how to improve their health, and many viable solutions to their issues include the use of marijuana.

In fact, the cannabis industry has actually grown significantly in 2021, and it is projected to reach $38.2 billion dollars in 2028.

In short, the widespread interest in solving health problems holistically and decreasing anxiety — along with a yearning for something fun to do during the pandemic for folks who were simply bored — has led to a massive surge in the industry.

If you are someone who doesn’t like to take many risks with your pocketbook, Mary Jane stocks are probably not for you: Although the industry is predicted to have grown significantly by 2025, the market is rather volatile, so it’s definitely a high-risk, high-reward situation.

INVESTING 101

If you are new to investing, it is essential to understand the importance of diversification: When it comes to income — whether that is active or passive — you never want to put all of your eggs in one basket: For instance, if you put all of your cash in a particular company, and it suddenly stops doing well, you risk losing a great amount of money. There are a few precautions anyone should take when it comes to investing: Diversification and risk management are key.

DIVERSIFICATION

You’ll want to have your cash spread across different sectors: Some in marijuana stocks that you believe in, some in the S&P 500, a little in wine, and perhaps even some in gold, silver, or real estate properties.

RISK MANAGEMENT

Because you can get a pretty decent return on your investments over time — potentially sooner than later if you’re working with $100,000 or more! — it can be tempting to simply throw all of your resources into stocks and bonds before building up a savings account to cover your living expenses in the event of an emergency, or a slow month if you are a freelancer.

You’ll want to set aside at least three-six months’ worth of living expenses before you invest anything, or twelve months’ worth if you’re either extremely cautious or self-employed or both.

PATIENCE

Patience and a healthy dose of anxiety management are essential when you are dealing with investments: It takes years to earn an enormous profit from stocks in most cases, and the drops in the market can feel devastating, but the reality is that you will likely get an annual return anywhere from 7–10% on average, even though there’s a lot of volatility sometimes — Most people don’t get rich overnight unless they’ve persistently invested for a decade or so, otherwise we’d have more millionaires and billionaires in this world than we already do, but the returns can be huge if you play your cards right!

YOU CAN’T TIME THE MARKET

No matter how hard anyone tries — or how many people tell you that you can time the market! — that is simply not the case.

It takes time for a business to reach profitability and, even then, the earnings are ultimately unpredictable in many cases depending on how many customers or clients are paying for their products and services, so you may see devastating lows and exhilarating highs.

Taking up meditation and having a hefty savings cushion will almost always alleviate these anxieties, but don’t believe anyone who tells you the stock market is 100% predictable: It’s not — The average return is accurate, but it swings every which way frequently.

HOLD YOUR STOCKS

More often than not, the best idea is to hold your stocks as the market goes through its ups and downs, that way you’ll still have that 7–10% annual return, which is an average, so your earnings will likely vary from year to year.

Marijuana has always carried with it some form of controversy, and it still does this day: Some people view the plant as a dangerous and addictive drug while others revere its healing properties.

While Mary Jane can be addictive, more and more research is coming out that the plant can decrease symptoms for a myriad of conditions ranging from dementia to PTSD, joint pain, and anxiety.

The legalization of cannabis is also a societal issue in America: Too many minorities are given inordinately severe prison sentences merely for having a small amount of marijuana in their possession.

Fortunately, quite a few states have now legalized the plant. Nonetheless, our country is struggling with a great deal of racial tension, and always has, so there is still a lot of progress to be made.

All this is to say that cannabis truly is a risky business in every sense, so a lot of companies will likely have great years and off years, and it’s extremely important to keep this in mind when you’re investing: It’s not exactly a conservative and safe option.

If you are averse to risk with your money, invest in the S&P 500!

If you don’t mind weathering some highs and lows with the potential of an enormous return, putting your money in marijuana stocks is a good bet!