Making the Right Budding Investment: Medical Versus Recreational Cannabis Companies
Investors who are choosing among the hundreds of businesses involved in the emerging, yet growing cannabis industry are often caught in a conundrum as to whether medical companies are a safer investment compared to recreational businesses.
The legal marijuana markets are currently generating $5.7 billion in revenue in 2015, an increase from $4.6 billion in 2014 in revenue and are estimated to reach $22 billion by 2020, according to The ArcView Group, a cannabis investment and research firm based in San Francisco.
Some investors view both types of companies with the same amount of skepticism because marijuana remains a federal drug, although four states have approved the use of them recreationally and 25 states passed the use of them for medical purposes. Currently, 86% of Americans live in a state that allows some level of legal marijuana use, The ArcView Group said.
“Right now, I view them as the same,” said Matthew Mills,...
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