Buy Quality At Rock Bottom Prices

The Warren Buffett Weed Play

Now is the time to buy-in the ever-growing cannabis boom that is spreading like wildfire throughout not just our country, but nearly the entire western hemisphere. Many of the biggest opportunities lie just to the north, and now to the south, of our borders. Big money from hedge funds and blue-chip corporations like Constellation Brands, the producer of Corona and Modelo, as well as Coca-Cola, are striking deals with cannabis companies, giving immense overnight returns to investors. These same gigantic returns are about to hit companies which have cornered their markets.  Ride The Marijuana Wave - Action Alert Marijuana EVE & Co

The market is LOADED with opportunities for savvy investors to make a fortune in marijuana! And thanks to an increased push towards legalization in many states, there’s a LOT of untapped potential. We are seeing niches within the marijuana industry EXPLODE ! Companies are specializing from cultivation to distribution, to processing and manufacturing, and of course, to retail sales to consumers who are ‘patients’ and casual indulgers. American exceptionalism is once again producing amazing companies!

However, most of those companies are too focused on one niche of the marijuana boom. They’re missing the Warren Buffett rule… and it could cost them millions.  Trading Alert EVE TSX.V  - Volume Spike

What Would Warren Do In Marijuana?

Warren Buffett’s approach is a simple one, and one that’s made him and his investors VERY rich.

Buffetts investing rule says “buy quality stocks at rock-bottom prices”. His real goal is to build more and more operating power for Berkshire Hathaway by owning stocks that will generate solid profits and capital appreciation for years to come.

A Marijuana Blue Chip Conglomerate 

You see, many marijuana companies saw the opportunities in marijuana, but they also realized the RISK. So they did what Warren would do… hedge.

They researched 5 of the most profitable growth sectors of the industry, including cultivation, packaging, transportation, branding and retail, and acquired companies in these spaces who on their own were successful, but TOGETHER with a full leadership team looking at multiple aspects can bring massive profitability to each.

Mainstream Weed Could Be Worth TRILLIONS

Even though North America has been stealing the spotlight the last few years, most of the fastest growing cannabis stocks are located to the North, in Canada where cannabis was recently legalized across the country. Cannabis is on pace to become a $10.8 billion industry by the end of 2019, with thousands of investors entering the market every day. Estimations for cannabis reach as high as $194 billion by 2026, and some believe has the potential to reach $1 trillion.

While Canada and the United States have stolen the media show, the opportunity in Latin America, which has been flying under the radar, is about to explode. Prohibition Partners believes that the Latin American cannabis industry will soon grow from $125 million in revenue this year to $12.7 billion by 2028. Many countries in South America like Puerto Rico and Columbia have legalized cannabis and struck exclusive production deals with select companies.

For example, Aphria went from a market cap of $313 million to $4.3 billion after firms Vanguard, Credit Suisse, RBC and BlackRock backed up their cash trucks and put their money down. The same happened to Aurora Cannabis, who went from a cap of $760 million, before Horizons Investment Management came in. Then followed investments from Goldman Sachs, Deutsche Bank, and UBS. Aurora’s stock skyrocketed, rising as high as 641% in a few weeks. Today, we’re witnessing a cannabis company with a market cap of $11.7 billion, an increase of 1,539%.

Given the explosive growth that Canadian companies have experienced in the 4th quarter of 2018 as they’ve gained huge investments from American companies and hedge funds, investors are getting nervous. With average valuations at 253 times earnings for the top four producers, it’s going to take a company that is willing to diversify and incorporate themselves into the U.S. market to hold on to their value. Certainly, all of the winners to date won’t, but more will, and they will require a different approach outside of heavily relying on cultivation, which is about to become a commodity-traded industry. That’s why the most recent cannabis stock fluctuations are caused by speculation that cannabis producers are diversifying into markets like beverages, dispensaries, distribution and branding.