Editor's Note: Greg Miller is closely following new developments at Canopy Growth and the termination of CEO Bruce Linton on July 3. He'll have an update for readers regarding this situation next week, so be sure to keep an eye out for it...
When it comes to being successful in business or investing, one simple trick is to mimic the routine of successful CEOs.
For successful cannabis investing, we can take a closer look at how Canopy Growth Inc. (NYSE: CGC) CEO Bruce Linton invests.
Linton runs the biggest marijuana firm in the world, and he's dominating the global industry.
Whether it's investing $150 million in hemp productions in New York or partnering with Martha Stewart to make CBD pet products, he has his hands in everything.
Canopy is also sitting on $4 billion thanks to Constellation Brands Inc. (NYSE: STZ), and Linton is planning how to use that money to make his shareholders wealthier.
The CEO also recently told Barron's that one of his key investments was a bottling plant for cannabis-infused beverages.
He plans to sell those in Canada by the end of the year.
I told you: He has his hands in everything.
And with these three tips, you can follow the example of one of the richest and most successful men in cannabis...
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Tip No. 1: Invest in the Future
One thing we've focused on lately is Latin America becoming the next big cannabis market. The climate offers ideal growing conditions at cheaper prices.
"In Canada, we made significant investments on a theory of how things [in the cannabis market] would open up," Linton said in a statement. "Now we're doing the same thing on a global basis. It's capital allocation against a not-entirely certain model."
LEGAL WAVE: Barriers to marijuana could be tumbling in Mexico and Thailand, but it's here in the U.S. where legalization could spark a "Green Rush" in certain stocks. Click here to learn about three of them...
Canopy has entered into a multi-year agreement with Procaps S.A.S, a Colombia-based company that develops and manufactures over-the-counter medications and nutritional supplements for international pharmaceutical companies.
Procaps exports products to more than 50 international markets, giving Canopy a global footprint. Linton's company is licensed to produce over 13.6 million square feet of THC- or CBD-dominant cannabis, which is one of the largest licenses in the world.
Canopy has also sold its Spectrum Therapeutics products to medical patients in Chile and Brazil.
Tip No. 2: Identify "Backdoor" Opportunities
If people want to enjoy the cannabis plant, one thing investors should look at is how those people are going to do that.
A lot of first introductions to the cannabis industry will be through consuming a THC-infused brownie or a CBD-infused beverage.
STAKE YOUR CLAIM: Three pot stocks in particular could be poised for rare, wild gains of up to 1,000%. Click here to learn how you could see a $2 million "pot payday"...
"When you're doing stuff at this scale, you start to think about things like beverages, vape pens, and chewable very differently. There's a whole range of things you'll start to see in our product offering in 2019, and that should increase margins because you're not really selling just cannabis - you're taking it and putting it into something else, which usually means much better margins," Linton told Business Insider.
Taking that a step further, one thing we're watching here at the National Institute for Cannabis Investors is ancillary investments. Cannabis companies need farming and extraction equipment, and farming and extraction are going to be big markets thanks to the 2018 Farm Bill.
We should start to see more IPOs from these "backdoor" cannabis plays soon.
Tip No. 3: Find the Pack Leaders
"Until it goes through all the necessary protocol and programs, it's just marijuana. You can call yourself a doctor, but until you go to school and achieve it, you're not. A lot of people who have had a routine exposure to marijuana don't see it as a potential medical disrupter - that it is until you kind of push their buttons," Linton told Business Insider.
Cannabis can disrupt the medical industry, but it's also going to disrupt the alcohol and wellness industries, too.
And finding the leaders of disruption can make you a lot of money.
There's going to be the Coca-Cola of CBD-infused beverages, or the Uber of cannabis delivery. For any other big business you can think of, the cannabis industry will have a similar counterpart.
That's why, when you make an investment, you should think about the long term.
- What is the company focusing on?
- How is it going to build a global presence?
- Do you see the company sticking around for the next 10 years?
Even though we've seen the market tone improve and cannabis stock prices start to climb, some of these companies are undervalued and offer a great entry point right now.
I hope seeing what Linton is focusing on will help you in your cannabis investing journey.
These 3 Stocks Are the Key to 2019's Greatest Profits
The 2018 midterm election was a turning point for the cannabis industry.
We expect nothing short of historic profits by the end of the year.
But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.
These three stocks, on the other hand, are flying under the radar... for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.
I don't know of any other sector providing anywhere near this level of growth now.
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.