13 Best-Performing Cannabis Investments in March 2024

Marijuana stocks are dangerous and the industry is growing like a weed. Puns all you want, but investing in marijuana is no joke. With recreational marijuana legalized in 21 states and medical marijuana legalized in far more, this once seedy commercial sector has become a full-fledged industry, albeit in its infancy. Masu.

At first glance, marijuana stocks may appear to be somewhat limited to retail. But if you dig a little deeper, you'll find that there are several subsectors within the industry in which everything from biotech and research companies to distribution and consumption specialists operate.

That being said, it's important to remember that this is still an industry in its infancy, and the primary products are still Schedule 1 drugs at the federal level. While that alone makes investing in marijuana risky, there are several other reasons why you should do thorough research before diving headfirst into cannabis stocks.

Below is a list of the 13 best-performing stocks in New Cannabis Ventures' Global Cannabis Stock Index that trade on the New York Stock Exchange or Nasdaq Exchange.

Source: Finviz. Stock data is current March 21, 2024is for informational purposes only and not for trading purposes.

Stocks are stocks, right? By definition, yes, you are purchasing ownership of a publicly traded company. However, marijuana stocks come with additional challenges and risks, including:

• A relatively new industry. The legalization of marijuana beyond medical purposes began in 2012. As a result, much of the marijuana inventory is very low and falls into the following categories: penny stocks, this is a dangerous area for investors, especially beginners. Young companies have a higher risk of going out of business, their stock prices can fluctuate widely, they may trade less frequently (making it harder to sell when the time comes), and they are more open to would-be investors. There are few studies conducted. Finally, marijuana is not yet legal at the federal level, which could create law enforcement threats in the future.

• Speculative Betting. For the reasons listed above, marijuana stocks should be considered a speculative investment at this time. Don't invest more than you can afford to lose.

• Possibility of fraud. Many people, including scammers, are eager to make money with cannabis stocks. The Securities and Exchange Commission Alert Content specific to marijuana stocks, including potential investment fraud (unauthorized sellers, guaranteed returns, unsolicited offers) and market manipulation (fake press aimed at disrupting trades and influencing prices) (e.g. releases).

• foreign stocks. Many of the cannabis stocks traded in the United States come from Canada, and they are also some of the largest. There are some additional risks when expanding your portfolio internationally. Access to financial data, such as research and company reports, may be more limited than required in the United States, and legal recourse may not exist if an investment is fraudulent.

• It has not yet been accepted by the financial services industry. Because marijuana is federally illegal, many banks are reluctant to do business with this industry. As a result, some investment professionals, such as advisors and portfolio managers, may no longer recommend investing in marijuana stocks. (To purchase marijuana stocks yourself, A step-by-step guide to buying stocks. )

If you are in a position to take on the risks associated with investing in marijuana stocks, be sure to know what you are getting into. A search will turn up dozens of very cheap marijuana stocks that may be appealing, but remember that they're cheap for a reason. There is usually little public information about marijuana, and it hasn't been around for very long. Join our investor community.

All marijuana strains are extremely dangerous at this point, but there are several ways to determine how legal a strain is.

What is the company's market capitalization? Market capitalization, or market capitalization, is how the stock market values ​​companies. Generally, the larger the market capitalization, the more established the company is and the less likely it is to go out of business. The largest companies have market capitalizations of more than $10 billion, and medium-sized companies have market capitalizations between $2 billion and $10 billion. The smallest companies have market capitalizations of less than $2 billion. These are called large-cap, mid-cap, and small-cap stocks, respectively.

At the moment, most of the marijuana stocks you come across fall into the small-cap and micro-cap categories (micro-cap refers to companies with a market capitalization of less than $250 million). There are several mid-cap marijuana stocks and even fewer large-cap stocks.

Is it traded on an official exchange? Stocks purchased over the counter are not required to disclose material information to the public, making it virtually impossible to perform a true analysis of the stock. If it's listed on a U.S. exchange, you'll likely see NYSE or NASDAQ in front of the stock ticker.if over the counterOTC is displayed.

Are analysts taking it seriously? Currently, Morningstar, a prominent investment research firm, has identified certain cannabis stocks such as Aurora Cannabis, Canopy Growth Corporation, Cronos Group, Curaleaf Holdings, Green Thumb Industries, and Tilray in its qualitative analysis program. Officially targeted only. There are thousands of “analysts” on the internet who can hype different penny stocks, but using a trusted source like Morningstar can help you narrow down your search.

Are you a purely marijuana company? This can be good or bad depending on what you're looking for. As the cannabis industry heats up, established companies such as lawn and garden supply company Scotts Miracle-Gro and pharmaceutical company Abbey are entering the industry in some form while maintaining their day-to-day businesses.

As such, they are often lumped together with pure-use marijuana stocks that operate exclusively in the marijuana industry. These indirect cannabis stocks can potentially be safer alternatives considering they're more established, but if you're looking to get into the ground floor of a young marijuana company, these are the ones for you. may not be suitable for you.

Just because you can buy a cannabis stock doesn't mean you should. You need to evaluate your investment goals, current holdings, and your tolerance for risk. Make sure you don't touch the money you plan to invest in these stocks for at least five years. Also remember that it is speculative in nature.

Marijuana stocks shouldn't be a large part of your portfolio. Also, no other single stock should make up a large portion of your portfolio. Rather, diversification, or the combination of different assets, is the key to long-term investment success. A general rule of thumb is to invest no more than 10% of your portfolio in individual stocks and focus instead on low-cost index funds such as mutual funds and exchange-traded funds.

As with any new investment, spend a few hours researching prospective cannabis stocks, including how the company makes money, the benefits of long-term investing, and what causes the stock price to rise or fall. (For first-time users, please refer to the guide. How to research stocks. )

Individual stocks aren't the only option for aspiring cannabis investors.There are some Marijuana ETF Available to US investors and may be attractive if you don't want to do stock-specific research. But the industry's broader risks remain. Marijuana ETFs have also experienced wild price fluctuations.

You will need securities account To buy marijuana stocks. You won't have a hard time finding most of these stocks selected by NerdWallet. Best broker for penny stock trading. Opening a brokerage account takes approximately 15 minutes. The process is similar to opening a checking or savings account.

If you're not looking to dabble in penny stocks other than marijuana stocks, consider our picks. Best broker for online stock trading Instead. Above all, you want to choose a broker that offers a variety of investments, including ETFs and mutual funds, low or no commissions, useful educational tools, and high-quality customer service.

Once you've funded your account, assessed your risk, and done your research to narrow down your options, you're ready to buy. You can find the stock using its ticker symbol and you should fill your order from there.

As with other stocks and ETFs, the price is determined by the so-called bid-ask spread, or the difference between what buyers are willing to pay and what sellers are willing to accept. This price is clearly stated on the order page, where you enter the number of shares (or dollar amount, depending on your brokerage) that you wish to purchase.

Please be sure to confirm your order before pressing the “Purchase” button. You are now officially an investor in the marijuana industry.