Medical Marijuana: Small Investors Reaping Big Returns

Last year sales of medical marijuana in California exceeded $1.3 billion, which was roughly 9% of the estimated $14 billion in revenue from all pot sales in the state. This percentage is quickly getting larger in a market that continues to grow. Assuming the overall market reaches $16 billion in 2014, while the medical marijuana percentage grows to 15%, California medical cannabis will represent a $2.4 billion industry in two years.

A feature article in Mother Jones Magazine (Jan-Feb 2011 issue), reads, “In many respects, the semi-legit marijuana market resembles the early days of the internet bubble, where start-ups helmed by young entrepreneurs with risky business plans sought venture capital and dreamed of stock offerings. Where dot-coms had server farms, the pot-coms have high-tech ‘grow ops’—indoor farms of wires, fans, and coiled air ducts that keep genetically selected, cloned pot plants growing 24/7.”