Five Ways To Diversify Your Cannabis Portfolio

One of the most frequently asked questions I have received over the last year pertains to how an investor can diversify their portfolio of cannabis stocks. A year ago, I would have said that it is impossible to be diversified in an industry filled with non-reporting, unregulated, developmental companies.

Today, the theory of diversification does apply to the cannabis industry. It is not an easy task, but with enough research any investor can diversify their portfolio of cannabis stocks. Technical420 analysts have done their due diligence and were able to determine that there are enough legitimate companies in the cannabis industry so investors can diversify their risk. This give long term investors the opportunity to invest in a number of speculative companies for the long haul, and profit off of their investments.

A budding industry

The cannabis industry is continuing its rapid development and we have seen more than 150 public companies enter the cannabis industry in the past year alone. These developments have helped expand the breadth of the industry, which gives the common person the ability to invest in a company that does not cultivate or distribute marijuana. Investors can invest in the following subsectors of the cannabis industry:

• Security
• Irrigation
• Agriculture
• Real Estate
• Financing
• Technology
• Pharmaceutical
• Consulting
• Dispensary Services
• Cannabis-based products and services (i.e. CBD)
• Education

Technical420 helps investors mitigate risk by thoroughly researching these companies. Our analysts speak with members of senior management and perform trend analysis so we are able to provide our users with profitable recommendations.

Five ways to diversify your portfolio

1. Diversify by investing in companies that operate in different states, primarily companies that operate in Colorado, California, and Washington. Not only do these states have more lenient regulations, but these states have more mature markets that are growing at exponential rates.
2. Invest in companies that operate in different industries and sub-industries. Many investors think that the retail/dispensary market is the hottest market to be in, but it is not. Investors should look into the biotech and pharmaceutical sector. Investors want to focus on industries that are not under significant scrutiny from the Federal Government.
3. Invest in companies that can use banks. These companies are able to grow without as many safety concerns. Until regulation reform takes place, investors should be looking at companies that can stash their cash in banks, not their homes.
4. Invest in companies that vary in size. Cannabis investors can diversify by investing in larger cannabis companies such as GW Pharmaceuticals and Insys Therapeutics, Inc. (INSY), as well as micro-cap companies such as Surna Inc. (SRNA), Abattis Bioceuticals Corp. (ATTBF) and American Cannabis Company (AMMJ).
5. Invest in companies that trade on different exchanges. Investors should invest in companies that trade on the NASDAQ, AMEX and OTC exchange.

Want to learn how you can capitalize on the cannabis industry? Subscriber today and become a Pro-Trader with Technical420 by using the link below.

https://technical420.com/user/register

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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