I Don’t Care What You Think About Cannabis. Just Check Out These Numbers.
If you’ve never seen the movie The Big Short, do yourself a favor and go watch it. Now.
In a nutshell, the film is about the 2007-2008 financial meltdown and how some savvy traders made big time money betting on the eventual housing market collapse.
The story is built upon one tiny group of people knowing one thing and one enormous group of people thinking another thing.
The small group knows that the housing market is being fueled by negligent lending, which will eventually lead to buyers not being able to pay for the homes they buy.
The large group thinks that housing prices will always go up.
In the investing world, this is the perfect set up. When the majority of the crowd is on the wrong side of a trade, the minority who is standing on the correct side can profit massively.
The same exact thing happened with Brexit. The majority thought it would never happen. The minority made massive bets that it would - and that minority made massive profits.
Now, there is another opportunity for you to pick a side... with cannabis.
You can be in the majority who thinks that cannabis will remain illegal and not consumed by many.
Or, you can be in the minority who knows what is actually happening.
Source: Civilized
To put this into perspective, understand this:
97.7% of the US population lives in a state where some form of cannabis is legal.
Think about that.
And well over 20% of the US population lives in a state where you can recreationally consume cannabis. As in, you can consume marijuana just like you would a glass of wine or a can of beer… for pleasure… no medical excuse needed.
Now Let’s Look At The Money
In the first eight months of 2017, Colorado’s cannabis revenue surpassed $1 billion. That’s about $125,000,000 per month. That’s a huge number for a state with a population of just over 5 million people.
But check this out…
Two days ago, Los Angeles voted to become the largest U.S. city with legal recreational marijuana.
Technically, the State of California already voted to approve recreational cannabis in 2016, but now cities are starting to approve and implement their own regulations.
Los Angeles County, which has twice the population as the State of Colorado, even has their own “Office of Cannabis Management.”
I am not making this up.
This is real. You can check out their website here.
Now, let’s play a little numbers game…
If the State of California has a population of about 40 million, then that’s about eight times the size of Colorado.
If Colorado is bringing in $125 million per month, we can just multiply that by eight for California.
$125,000,000 x 8 = $1,000,000,000
That’s one billion dollars per month, if we assume the same numbers.
Ok, I know Colorado is full of rock climbers, mountain bikers, and all kinds of cannabis-consuming-hippies.
But… California… hell, marijuana was invented in California!
Well, not really, but I don’t doubt that California will have very similar numbers to Colorado, if not bigger.
If we look at all the states where cannabis is currently recreationally legal, then that population is about 65,000,000. That’s about 13 times the size of Colorado.
If we use the same math… $125,000,000 x 13 = $1,625,000,000 revenue per month.
I don’t want to get too far ahead of myself. We could extrapolate these numbers to fit all kinds of scenarios.
The point is this:
The development of the multi-billion dollar cannabis industry isn’t going to happen. It is already happening.
And it’s not just small consumers that are driving this industry.
Last month, Constellation Brands (the $42 billion company behind Corona, Modelo, and Svedka) bought a $191 million dollar stake in the Canadian marijuana company Canopy Growth.
Alcohol companies know that cannabis is a threat to their industry, so they are looking at acquiring marijuana companies. It’s just like Facebook buying Instagram or WhatsApp.
Although I cannot disclose the details, I can tell you that we are currently doing due diligence on a variety of early stage cannabis companies. About four of those cannabis companies are currently being courted by two major alcohol brands (bigger than Constellation).
Over the next several years, there will be a significant shake out in the cannabis industry. Through consolidations, acquisitions, and of course some failures, the cannabis industry you see today will be completely different in five years.
If you are serious about investing in this space, the time is right now before the major corporations step in and gobble up these tiny companies.
You want to be an owner in these tiny companies when they get gobbled up. That’s how venture capitalists and angel investors make returns of well over 1,000%.
They get ownership stakes in small companies before they become mainstream.
We (the Explorer Partnership) already made a significant investment into a company earlier this year. And we are going to have the opportunity to do more.
Next month (January 2018), we’ll be in Denver, Colorado to check out more early stage cannabis companies.
Denver is the ‘Silicon Valley of cannabis startups.’ That’s why we're going there.
We’ll also be touring a cannabis grow, an extraction lab, and an edibles manufacturing facility. We’ll be meeting with CEOs of these companies and we’ll get to ask whatever questions we want.
This isn’t like buying cannabis penny stocks and crossing your fingers that they go up. This is real-deal investing by putting boots on the ground and shaking hands with the people who are running companies.
A couple of weeks ago, I opened up access to the trip and we sold out in about four hours. Because of the nature of the trip (we are physically meeting with people and touring facilities) we have to limit attendance.
We also have 2 dinners and 1 lunch at four and five star restaurants, where we’ll be getting presentations from cannabis insiders. (And one other investment that I can’t talk about yet.)
Like I said, we were sold out. But, this week, we made room for about 6 more people. If you’d like to join us, please do. You can sign up here.
(For full transparency, this is not a money-making venture for us. We are more interested in investing in these companies along side others to increase our power, influence, and probability of investment success.)
We also have a block of rooms at the Hilton hotel with a special discounted rate.
To be clear, this is only for people who are serious about investing in the cannabis space OR for people who want to get a first hand view of what is actually happening in this booming industry. I can tell you that in a couple year from now, this opportunity to invest in this space will not be the same.
Right now, you are in the minority of people who knows what is happening. That won't last forever.
Cannabis is Definitely Coming to America
and, overall, it's going to be a good thing.
The Numbers are Inflated
when you factor in multi-million acre farms coming online. The price of cannabis is going to drop to under $100/lb for commercial quality. And then it's going to drop through the floor. Once worldwide restrictions end (probably another 40 years lol) the USA will probably import the majority of poor quality cannabis for Marlboro quality joints. (there ARE quality tobacco companies and the biggest ones are not in the running)
Recreational Allowances Spur Innovation
because now, in places where 21 and over can work with cannabis freely, innovation is free to happen. Well, free'er anyway. Awesome to see people finding unique ways to gather fresh information together. Personally meeting the people and seeing the company processes is huge. :)
So yeah, bring on the cannabis. The sooner people realize they've been lied to (and worse) for decades, the quicker we can put this era of craziness behind us.
Go Be Awesome!
I agree 100% with you about the prices for cannabis... as more and more growers come on line, the price is going to tank (BTW, it is today in Colorado).
BUT... the revenue is more reflective of actual brands (regardless of how much their product costs them).
Sales of cannabis products are going to continue to go up and with cannabis prices going down, profit margins for the actual companies are going to go up... great news for investors!
Right on the money!
I think it will eventually become federally legal but you have to think, would Trump be the one to legalize it? That's a toss up decision. I could see him legalizing but then he'd probably give it a 80% tax so we can fund wars. Otherwise we are going to be waiting at least 4 years, maybe 8 before we see federal progress for pot
Marijuana will become federally legal when big pharma has all their lobbyists, laws & corporate pesticide filled fake weed ready to go. Keep the power in the hands of the people, invest in local communities & don’t sell out to the Monsanto’s & alcohol company killers