General Question

LDRSHIP's avatar

How can I make a profit from legal marijuana?

Asked by LDRSHIP (1774points) January 1st, 2014

Seems like it will be a lucrative thing to get into , but how or where to being?

Are there companies I simply invest into? How does it work?

I wouldn’t be able to open a shop and run it, what other options?

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19 Answers

flip86's avatar

I wouldn’t if I were you. It is still a crime under the DOJ. The feds could still raid you.

bolwerk's avatar

I don’t know the law, but it’s unlikely that public companies will be doing it for the reason @flip86 mentioned. The current conservative republican administration seems to be taking a live-and-let-live approach, but all it would take to reverse that is an activist Republikan administration – which is always not more than a few elections away.

LDRSHIP's avatar

@flip86 I am confused on the legal side of it then like medical use. Would I invest into the medical companies that use it? Can you it explain it more to me?

Places like this apply too?

talljasperman's avatar

In Canada you can get a business permit to grow medicinal pot, but you can’t sell or give to anyone else. The laws are changing. For a brief time you could sell pot legally, but its all tied up in the courts. Write to Marc Emery the prince of pot if you can find him in a prison.
Wikipedia states that On April 20, 2011, Emery was transferred to Yazoo City Prison in Mississippi for five years for sending seeds over the border.
You can subscribe to the magazine High Times for more help.

bolwerk's avatar

@LDRSHIP: there is effectively nothing to invest in. It’s illegal. Even the medical MJ is illegal. It’s not being prosecuted right now, not heavily anyway, but it remains a federal crime.

I guess states are licensing firms and dispensaries, but they are doing so contrary to U.S. federal law.

johnpowell's avatar

It is low overhead. So investing probably is out of the question since it really isn’t needed.

LDRSHIP's avatar

None of this really makes sense to me. I just thought it was interesting since it seemed to be a constant up and coming thing.

Also what do you mean by low overhead?

flip86's avatar

@LDRSHIP Marijuana has been legalized recreationally on the STATE level in Colorado and Washington and medicinally for several other states. It is still illegal on the FEDERAL level in both cases. So, while STATE law enforcement may not raid you and prosecute, The Department Of Justice(the Feds)can and will raid and prosecute whenever they choose. That is why it isn’t worth getting involved.

gailcalled's avatar

Low overhead; What it costs for seeds, soil, sprinkler systems,and heat lamps, possibly a cheap green house in cool climates.

Overhead; (of a cost or expense) incurred in the general upkeep or running of a plant, premises, or business, and not attributable to specific products or items.

Jaxk's avatar

Not much in the way of production and distribution has yet been finalized. Your not going to see investment opportunities for stocks while it’s still a federal crime. It may seem lucrative but the only thing that’s been determined is the tax. Plant a couple thousand acres of pot and let’s see if you get the attention of the feds.

bossob's avatar

How about a peripheral business. The owner of a tour business has found a new niche in CO, which started pot retail sales today. (near the bottom of the page)

Vincentt's avatar

It’s been legal for a long time in the Netherlands by now, and though there are plenty of coffee shops and the like, which have been able to stay afloat just fine, they do not have a reputation of being particularly lucrative – I don’t know where you got that impression?

elbanditoroso's avatar

If you live in Colorado or Washington state, you open up a shop. Buy wholesale, then package and sell at a higher price.

The problem is that the capital and licensing costs are huge and the “big drug” conglomerates are already in place in both those states.

DWW25921's avatar

You could sell it to my friends and I… Just saying…

Strauss's avatar

Pot shops and grow operations are legal here in Colorado. Most (if not all) current retailers, distributors and growers have already been in the business of medical marijuana, and have tailored their existing businesses to the retail trade. Although it is legal in this state, the fact that it is against Federal law makes it difficult, if not impossible, for the anyone in the industry to use the services of federally chartered or insured banking institutions. You may find some investment opportunities down the road, but for now, it does not seem to be anything I would invest in with any confidence.

Buttonstc's avatar

Take some courses at Oaksterdam Univ. in California which will familiarize you with all applicable federal and state law and then decide if its worth the risk.
And apparently there is a similar effort underway in Colorado, but if it were me, I’d make the trip to Calif. and learn from those with the most experience and best reputation.

Paradox25's avatar

I’d be careful since Cannabis is still classified as a schedule I controlled substance, on par with cocaine and heroin, despite killing less people than alcohol. Holder said he would respect the decisions of states where Cannabis was made legal, whether for recreation or medicine, but many shops and grow operations are still being raided in those states as we speak here.

Until the federal ban against Cannabis is overturned by a congressional majority, technically you’re still breaking the law by making a profit of any type from it. Federal law still outweighs state laws. I’m rather surprised that the government isn’t waking up to the wishes of the public yet, and state laws.

El_Cadejo's avatar

@Paradox25 Cocaine is actual schedule 2, yup evidently cocaine is safer than marijuana, who knew? :P

Paradox25's avatar

@uberbatman Wow, I goofed. Probably because cocaine has some type of limited medical use I’m guessing. The criteria for schedule 2 drugs does not look any safer than that for schedule 1 drugs.

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