Investing in the US Cannabis Industry??

JobBidUK

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BEFORE ANYBODY STARTS I WANT TO SAY I KNOW IT IS ILLEGAL IN THE UK AND OTHER COUNTRIES IN THE EU BUT I AM LOOKING AT IT FROM A PURELY FINANCIAL INVESTMENT POINT OF VIEW.

I am have been looking into investing into some sort of business but the UK markets seem a little too risky with no definite growth predicted from any industry.... So I came up with the idea of backing an industry that has seen steady growth in the past 12 months.... the US CANNABIS INDUSTRY.

I am purely looking for advice, such as taxation and legality etc.

If you have some "drugs are bad" comment to make please just save it as I know the law.

Thanks for any serious commenters!
 
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Ste Hughes

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What's immoral about it?

I've never even smoke a cig in my life, never mind weed... but if people want to do it and its legal where they are then cool, its up to them.

There is a company who's stock doubled overnight when Colorado legalised it. They made and sold vending machines for joints.

There was a group of 4 20 somethings which now sell $4 million a month growing the stuff.

If investing in a legal substance is immoral then wow.

But my philosophy has always been, if the monies there I don't care.
 
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Sacha

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Comparing the tobacco, alcohol or cannabis trade to the arms trade, morally, is ludicrous. The arms trade is based primarily on the destruction of our fellow citizens of Planet Earth, whilst tobacco, alcohol or cannabis trade is based primarily in making people happy.

As for comparing cannabis investment in legalised US states to investing in despotic governments, well that is completely ridiculous.
 
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AllUpHere

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    Comparing the tobacco, alcohol or cannabis trade to the arms trade, morally, is ludicrous. The arms trade is based primarily on the destruction of our fellow citizens of Planet Earth, whilst tobacco, alcohol or cannabis trade is based primarily in making people happy.

    As for comparing cannabis investment in legalised US states to investing in despotic governments, well that is completely ridiculous.

    Do you not think Ethicalpr's comment may have been aimed at the 'if the money's there, I don't care' part of the post?
     
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    ethical PR

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    Thanks All Up Here - that's exactly what my comment related to.

    However saying tobacco and alcohol primarily makes people happy is a little naïve - look at the millions in this country suffering long term health conditions as a result of using tobacco and alcohol and the impact on our society, emergency services and health services of those who regularly abuse alcohol as part of our night time economy.
     
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    @ Ethical PR: too true. Same goes for cannabis. I have known people, and have even had clients, whose lives have been ruined by cannabis. In fact I recall the slide into paranoid schizophrenia of one client over the course of my 3 year association with him. Sure, compared to harder drugs it's relatively harmless, but over a moderately long period of time, it can destroy lives without use of other drugs. Over short periods of time, it can also drain you of vigour, drive and motivation.

    Sorry - have put soap box away now. :D
     
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    Nuno

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    Moral or immoral I'd tread very carefully. The larger American banks are not processing sales for fear of being put on the naughty list, (like Iran and Putin's chums), as the Federal government is not behind legalisation. You might be able to buy in via small local bank, (the sort they let go broke in a crisis).
    There is thus a small risk, but still a risk that you could get unwanted attention from the US Treasury Department. Do you know how much lawyers are in the USA? Are you familiar with the term 'plea bargain'?
     
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    Sacha

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    Eh, well go to Iran, alcohol is illegal there people still drink, drive drunk, etc. Having a mature, responsible, caring industry will only be a positive impact.

    At the end of the day anything in excess is bad for you. That includes food, water, even oxygen. Don't just stigmatise cannabis, alcohol or tobacco.

    If people are not using alcohol, tobacco, cannabis, or any other consumable, reasonably then I don't see why the people who DO use them responsibly should be ashamed of their chosen relaxant. Nothing immoral about selling anything responsibly if it is aimed to benefit humanity rather than harm humanity.

    Anyway forget alcohol, tobacco or cannabis. Most people in the UK are hooked on prescription drugs, sleeping pills & pain killers. Would you call chemists immoral for watching as their clients scoff down dozens of tablets a day?
     
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    ethical PR

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    Hi Sasha - I've been to Iran quite a few time thanks (have you?) and Opium is a much bigger issue there than alcohol.

    People still drive drunk in societies where alcohol is legal - so your argument is a little spurious.

    My point is it's a little naïve to say that alcohol and tobacco is primarily making people happy without looking at the wider consequences for our society, the society where it is produced, developing countries where the tobacco industry is focussing it's marketing activities - primarily aiming them at children and young people etc

    Tobacco, cannabis and alcohol is not aimed at benefiting humanity - it's aimed at benefitting the businesses that produce it and their investors.

    Sorry OP rant over - I'll let the thread get back to it's primary purpose.
     
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    Nuno

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    Isn't this thread about investing in an industry in America?
    The OP specifically asked that no-one got into a moral/immoral argument, but no, some people think their moral position is more important.
    Perhaps the morality of wanting to dictate what adults can and can't do is itself the most odious attitude.
    No wonder people turn to drugs.
     
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    Sacha

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    Firstly I apologise if this is against OPs wishes.

    Hi Sasha - I've been to Iran quite a few time thanks (have you?) and Opium is a much bigger issue there than alcohol.

    Hey babe.

    Wow interesting, didn't expect that.

    Yes I was in Iran recently. I have an Iranian & Italian passport, but I was born and grew up in the UK.

    Opium is the drug of choice for the older generation in Iran. That being the case over the past decade as the massive youth population of Iran become young adults (roughly 80% of the population are under 30) alcohol & meth has become more popular.

    Further cannabis is now the 'in' drug, mainly due to the experiences of older siblings being addicted to meth (shee-sheh in Persian), so younger siblings have chosen cannabis instead as it isn't as bad for you.

    People still drive drunk in societies where alcohol is legal - so your argument is a little spurious.

    Well my point is the legality or morality of the substance does not, necessarily, alter people's behaviours surrounding that substance.

    Also money generated through taxation of the substance can be used to produce propaganda which alters the culture of the economy. For example making drink driving a cultural taboo through advertising campaigns.

    My point is it's a little naïve to say that alcohol and tobacco is primarily making people happy without looking at the wider consequences for our society, the society where it is produced, developing countries where the tobacco industry is focussing it's marketing activities - primarily aiming them at children and young people etc

    Well I would say the vast majority of people enjoying alcohol are in fact doing so responsibly. It is only a fraction of people drinking who go out and cause trouble in the UK, or worldwide.

    The same goes for people who get mental issues from smoking cannabis, very small percentage of actual users. Also there are plenty of successful people who smoke cannabis. Carl Segan, visionary scientist, and he famously smoked pot all the time. So... the pendulum can and does swing both ways.


    Tobacco, cannabis and alcohol is not aimed at benefiting humanity - it's aimed at benefitting the businesses that produce it and their investors.

    Well I can tell you if they weren't making people happy they would go bust. Both industries started by supplying a demand and making people who wanted those products happy.

    The arms trade however was founded with the intention of enslaving and killing our fellow man.

    Today due to the global business culture it's all about profits, which isn't tobacco or alcohol's fault, it's our fault for allowing our culture to be so profits based. The first people who started harvest tobacco did so to benefit their fellow man, as did the first person to fermented berries or whatever the first alcohol was fermented from.

    Anyway, I started my business not for profit it is to give people honest, homemade, fresh food at good prices. And I give free vegetable soup to poor people and go out of my way to make people as happy as possible every moment. So I am doing my bit for a better, more ethical business culture and I will speak as loudly as I can about changing the profits growth led business model in the future. :)

    Cheers to a better future for all of our fellow citizens of Planet Earth
     
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    Perhaps the morality of wanting to dictate what adults can and can't do is itself the most odious attitude.
    No wonder people turn to drugs.

    Its not about what adults do,its about what they do to other people.

    50% of serious crime is already caused by alcohol .

    No idea what percentage is caused by pot.

    Suggesting that pot or alcohol makes people happiy is ridiculous as they are both depressants and poisons.

    Best they can do is make people oblivious to how unhappy they may be for a short period.
     
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    Moneyman

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    thinking just as a commodity. too easy to produce and so it will end up being low margin high volume. the Marley label might take off. It is carcinogenus and do you want to invest in something that could cause some serious law suits for ever minor criminal "product a made me do it". right wing judges are normally drinkers not smokers so I would presume they might just find against cannabis producers.
     
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    O

    Office Cleaning

    There was a piece on this on the bottom line programme on r4 which I'm sure you could find online. They had a guy who ran a cannabis shop in Colorado. One of the issues the owner had was with banking, as, from memory, banking is subject to federal regs whereas the it was the state (colorado) that had legalised the sale of cannabis. The owner had no access to bank accounts/banking facilities. So it's sounds problematic.

    As an interesting aside, one of the other guests on there sold vapour cigarettes (not sure if this is what they are called?) - anyway it appears this is a massive growth industry in Colorado due to cannabis takers who want to avoid tobacco whilst ingesting cannabis.
     
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    Nuno

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    So a proportion of the 18% of people killed in UK road crashes having spliffed up is a reason for not investing in an American industry?

    Research has shown that cannabis is carcinogenic, just how much is in question. If you smoke it mixed with tobacco you are taking a short cut to ill health.
    It is now accepted that cannabis plays a part in triggering some psychotic episodes and even schizophrenia especially in some younger users. (NB Notice those "somes").

    Worst of all is going nuts and topping yourself because you believe you have cancer...
     
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    matt90bc

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    so back to the topic ,is it a good investment,or along those lines.it may well be as its fast becoming more acceptable in other states and will probably become legal here soon enough as it can be regulated more so as not to keep increasing the strength and it would reduce contact with dealers who have access to things a lot worse. I'd say it was a good investment and it would be taxed in the same way as any other foreign investment I'd imagine though I'm no expert on those things.the moral side of it,its not that bad,worse things happen from alcohol so don't feel bad about it.If it did become legal here I'm sure a lot would be imported as its just easier to get something from an already up and running source.
     
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    Have you considered if there's an opportunity for investing in therapeutic cannabis oil?
    If morality issues are a stumbling block then perhaps the oil that Rick Simpson advocates using to cure cancer is the way to go - once the legal aspects have been addressed that is.
     
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    mtools

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    Suggesting that pot or alcohol makes people happiy is ridiculous as they are both depressants and poisons.

    Best they can do is make people oblivious to how unhappy they may be for a short period.

    You are confusion the physiological effect caused by narcotics, "depressant" the opposite of stimulants, essentially they "relax" you. This is not to be confused with clinical depression the mental illness.

    One point that someone made about cannabis leading to mental illness, there has not seen the action in which this happens in the brain, it could easily be argued that people with a predisposition to mental illness could be drawn to cannabis.
     
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    Twinkle Toes

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    LOL, got to love the pro-cannabis brigade who compare it to alcohol. CLUE lads and ladesses, alcohol is legal.

    Now I'm not going to get into the details, but the effects of cannabis, as a "recreational" drug are well documtended, and recently in the news. Those that use it are druggies.

    I now await the "it's medicinal" comments.
     
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    This thread needs moderated, almost reading like a facebook group with bickering on nothing like the original post.

    Someone please delete all the irrelevant bits.

    This is not a thread about moral, legal or social aspects of cannabis, it is about investment opportunity OR SHOULD BE!

    Should have been interesting but turned into a predictable and frequently repeated list of arguments on topics that have SFA to do with the opportunity
     
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    Raw Rob

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    LOL, got to love the pro-cannabis brigade who compare it to alcohol. CLUE lads and ladesses, alcohol is legal.

    Now I'm not going to get into the details, but the effects of cannabis, as a "recreational" drug are well documtended, and recently in the news. Those that use it are druggies.
    That is nuch a naive comment. There is research that suggests that alcohol is the most dangerous drug there is, and that cannabis is safer than tobacco. The law is irrelevant, the laws were made a long time ago without all the facts. The chart below comes from a scientific study which was published in The Lancet in 2010: www.sg.unimaas.nl/_OLD/oudelezingen/dddsd.pdf
    Nutt.png
     
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