CANNAINVESTOR Magazine August 2016 - Page 24

Investing in the Cannabis Industry - Ecoforming Revisted

With good reason, many articles written on investing in this industry include paragraphs dedicated to detailing and explaining the continuous upheaval to the industry combined with cautionary words regarding the risk of investing in the industry. The primary reason most often given is the precarious legal status of Marijuana. Being illegal federally directly translates into challenges and obstacles including the well-documented problems with banking and tax treatment. The legality issue combined with continuous shocks to the industry create an investment climate seemingly like no other.

In the June issue of CannaInvestor Magazine, I introduced readers to a term I coined to describe this constant Terraforming to the Marijuana Industry’s economic environment: “Ecoforming”. The term Terraforming is well known in the Science Fiction world and means to transform the environment to be more hospitable and often there are mishaps and consequences as well as opportunities during the process – a process that often includes extinction and destruction as well as the rise of new life. Once the Terraforming has been completed, the environment is often unrecognizable to what it was before the Terraforming.That analogy fits the Medical and Recreational Marijuana industry’s environment perfectly. Ecoforming is a single word that encompasses what once took paragraphs to convey. However, one must never lose site of the fact that the investment environment right now in this industry, is filled with risk. However, risk can be managed, and even mitigated.

WHAT INVESTMENT APPROACH WORKS BEST DURING ECOFORMING?

Start by going back to the basics – it is that simple!

Risk can be managed in

the cannabis industry!

From a

Retail Investor's Perspective

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