By Matt McCallApr 08, 2019
It doesn’t happen very often. I can tell you that after nearly 20 years of investing.
I can also tell you that most will miss it.
Let me ask you: How often do you expect to get the opportunity to invest in a sector with 40X growth potential in just a few years?
If you’re honest, you will probably say “none” or maybe “one.” Such opportunities are rare.
Some may think I’m crazy for even bringing up such large numbers. But the numbers aren’t mine… and I assure you the potential is very real.
You know from recent articles how the market for legal marijuana is set to grow 10-fold over the next decade. So what, then, is this explosive industry that’s set to grow larger and faster?
It’s actually a subsector of marijuana.
Specifically, it’s cannabidiol (CBD) products made from hemp, which is marijuana’s cousin that just became legal in the United States.
Consumers are more aware of the health benefits of CBD. I’ve used it myself and found it helpful, and I know others who have as well. That’s why, according to Brightfield Group, the market for CBD-hemp products will soar more than 3,600% from $590 million last year to $22 billion by 2022.
I would be skeptical if I hadn’t seen evidence of it with my own eyes.
I’ll let you in on a little secret: One of the best ways to spot the next big trend is… to keep your eyes open.
That may sound disappointingly simple, but it’s true.
At its core, investing is actually simple. However, it’s definitely not easy.
Isn’t that the way with many worthwhile things in life? If you want to get in better shape, you know you have to work out more and eat better. Pretty simple, but man is it hard to avoid the cookie jar before bed.
Too many investors overthink their strategy, but as legendary investor Peter Lynch said: Invest in what you know.
If you saw Starbucks coffee shops popping up all over the place in the 1990s, it was time to buy the stock. If you invested $1,000 in Starbucks in 1992, it would be worth $182,500 today. If you invested $10,000, you would be sitting on $1,825,000!
That brings me to today. I refuse to simply sit in my office looking at my computer screen for investment ideas. That’s part of it, sure, but it should never be all of it. There is no substitute for in-person research, conversations, and observations.
That’s why I travel, attend conferences, talk with CEOs and industry experts, and anything else that gives me a leg up on other investors who do sit in front of their screens and call it a day.
Over the last year, I traveled to various parts of the world researching and seeking opportunities to make my readers a lot of money. From Italy to Portugal to Canada to many cities throughout the U.S., there was one industry that kept popping up all over.
You guessed it. Hemp CBD.
Regular MoneyWire readers know that the cannabis industry is one of my favorite investment opportunities I have ever uncovered. I followed the industry back when 99.9% of all other investors doubted its legitimacy.
Now, the legal marijuana market is booming. Thanks to a wave of legalization, sales in the U.S. and Canada are growing at more than 20% per year… and will do so for many years. The legal marijuana industry is set to grow 10-fold over the coming decade.
This will create massive new markets and stock winners. In fact, I’m about to reveal a new strategy for finding a certain type of big winner tomorrow in a live webinar. I’ll even be giving away the name and ticker symbol of the stock my new research indicates is the next potential pot stock to jump 1,000% or more in the near future. You can click here to reserve your spot now.
In addition, hemp-CBD stocks may be some of the biggest winners of all. This subsector of the booming cannabis industry has some rare characteristics that make it an opportunity we may not see again.
How often does a sector go from illegal to legal from coast to coast?
And… how often is that sector already one of the fastest growing in the world?
Take the combination of hemp legalization, the growth of cannabis overall, and the fact that hemp-CBD products are now entering the consumer mainstream and you have the potential for 40X growth in the next few years and up to 100X in the next decade.
We are now at the beginning of the next big catalyst to drive hemp-CBD stocks higher – the move into large chain retailers.
This is an area that will quite literally go from nothing to billions of dollars. Of the $590 million in hemp-CBD sales in 2018, ZERO came from large chain retailers.
Walmart (WMT), Target (TGT), CVS Health (CVS), Walgreens (WBA), and others avoided it for a very good reason: Hemp was still illegal. That all changed when the 2018 Farm Bill became law in December.
It didn’t take long for things to heat up. The big chain retailers are already racing to offer CBD products – everything from creams to oils to tinctures to skin care lines. You name it… chances are it will be on the shelves at your local store before you know it.
Several major retailers have thrown their hats into the ring in just the few months since hemp became legal. In January, high-end retailer Neiman Marcus began selling a variety of CBD products from some of the top brands in the country.
Barney’s, another high-end retailer, launched the “The High End,” a section of its store dedicated to CBD. It has everything from custom limited edition vape pens to CBD skin care products.
But the biggest news thus far just happened in late March when the top pharmacy chain, CVS Health, announced it will sell CBD products in about 800 stores in eight states. The news was the first of its kind and very clearly the tip of the iceberg. CVS has over 10,000 stores worldwide, and there is no doubt it will expand CBD into more locations as time goes on.
Just like any other hot industry, once one major player takes a leap, others follow. One week later, the second largest pharmacy in the country announced it will also offer CBD. Walgreens will offer CBD products in nearly double the number of stores (1,500) as its competitor.
Brightfield Group projects sales at large retail chains will jump from $0 last year to $13.9 billion by 2022, making up 64% of the CBD market.
The real moneymaking opportunity here isn’t in those big stores. It will take a while for CBD sales to move the needle. Instead, just imagine the amount of hemp and CBD that will be needed to supply the large chain retailers.
The whole industry is being reinvented. The $590 million in 2018 came mostly from natural food stores, smoke shops, and online. CVS and Walgreens alone could eclipse that number in a few short years.
In short, investors who get into the best positioned companies in the hemp-CBD industry stand to make profits not seen since the days of the early tech revolution. Suppliers that are able to meet the growing demand are just one opportunity. In fact, two hemp-CBD suppliers I’ve recommended both doubled in six months.
I hope you’ll take advantage of this rare opportunity.
P.S. I hope you’re as excited about tomorrow night’s event as I am.
I’m hard at work on my next presentation to investors like you — all about a particular market anomaly that’s sending certain cannabis stocks up over 1,000%. And those gains will not involve options or any unnecessary risk.
I will reveal this anomaly, and you’ll walk away with a free stock name and symbol that my research shows could jump 1,000% in the near future.
Once again, I’ll be holding this Cannabis Stock Summit at 7 p.m. ET on Tuesday, April 9. So mark your calendar… and click here to reserve your spot by visiting my event site.
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