And the problem extends well outside the Centennial State’s borders: as of December 2019, cannabis stocks have, for nine months, been mired in a sharp downturn.
Additionally, business ethics and morality have never really factored into investments for the average shareholder, but it’s critical in the cannabis space. For example, as part of our recent expansion into Michigan, the City of Grand Rapids is hesitant to allow recreational cannabis until the industry and the city address social equity. So, for investors, the companies you’re investing in better have one of the strongest corporate social responsibility (CSR) models out there. It’s not just paying lip service to these important causes but holding job fairs focused on social equity and assisting with funding minority business owners to gain access to the cannabis industry. If we can’t force governments to legalize recreational marijuana until we solve social equity issues, then it’s imperative to invest in companies that want to do the work there.
As has become painfully obvious in recent years, poor business practices are putting the industry on precarious financial footing.
Private vs. Public Route
The smartest thing investors can do right now is research private investment opportunities as opposed to shareholder opportunities. This way, investors are able to actually work with a company, calling them for progress updates, getting answers to questions and truly becoming an intimate part of their buildout.