Let’s clarify the differences that any person should know when investing in legal cannabis. E-growing (or crowdgrowing) is an emerging movement that brings together e-growers and real cannabis farmers. Anyone can be part of the cannabis industry from a laptop or a mobile with internet access and capital. All it takes is to buy a clone of a plant, wait the harvest time and sell the plant for a profit. The expected income per harvest of each plan is shown at the time of purchase and is alien to industry conditions or the overall financial markets trends.
On the other hand, a cannabis stock market is a place (physical or virtual) where buyers and sellers meet to exchange company stocks. Each stock works as a document that proves the ownership percentage of a company, and this document can be sold to others. Entering into this market demands a relatively high outlay, a knowledge gap usually closed through researching cannabis investing news, a high transaction cost and volatile price swings due to cannabis regulation and speculation. These aspects serve as entrance barriers for investors, regardless of their size.
Stock market: the traditional way
When investing in the stock market you find indices that represent the worth of a group of publicly listed companies. Most developed economies have their own (or multiple) index(es) and they are used by traders to analyze and invest based on their movements. As an example, we will show you expected return of the world’s largest indices based on the market capitalization of their constituents:
- S&P 500 (Standard & Poor’s 500): index that comprises 500 major companies in the United States of America. The yearly average return in the last 30 years is 9.87% (Source).
- Dow Jones Industrial Average (DJIA): index representing the value of 30 large firms. The yearly average return from 1921 to 2019 is 7.75% (Source).
- Nasdaq Composite (IXIC): index made up of 102 equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock market. It is a modified capitalization-weighted index. The yearly average return in the last 15 years is 10.19% (Source).
In regard to cannabis stocks like Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), or Tilray Inc. (TLRY), “they have underperformed the broader market. The ETFMG Alternative Harvest ETF has provided a total return of 37.7% over the past 12 months, above the Russell 1000 index’s total return of 40.1%. These market performance numbers are as of July 26, 2021”. (Source)
E-growing expected returns
As we have analysed in a previous chapter, an e-grower can expect yields from 36% in 108 days to 3.5 times the investment in 4 years depending on the Juicy Categories and expected waiting time.
Cannabis investing risks
When it comes to investment, any business or industry carries some degree of risk. Traditionally, buying shares in the stock market has shown that the higher the risk, the higher the profit. Same applies here. High yields are a sign that the investor is putting the “skin in the game” and rather than playing the speculation game through investing in cannabis stocks, he or she is investing directly into multiplying the impact that medical and recreational cannabis have on local farmers and their customers.
The e-grower expects higher returns because the transaction rules are business centric rather than speculation centric. Some of these risks are abrupt weather changes, abnormal temperatures or uncontrollable plant diseases. In all these cases e-growers must guarantee they will do everything to ensure that the funds from farmers, e-growers and every partner will be delivered as quickly as possible.
Your e-grower channel
In JuicyFields, we have developed a risk-mitigated model through a professional and dedicated team. This business model offers entrepreneurs a high profit, turn-key efficient, plant-touching business from the start. Check the expected profits from each of our products. We have calculated and implemented all entry level risks, working with only experienced and authorized partners.
Step by step to be an e-grower
- Go to juicyfields.io
- Register for free
- Visit the clone shop menu
- As you will be purchasing plants in the cannabis industry, you will have to choose which Juicy Category you prefer to purchase based on your risk profile and profit expectations.
- Choose how many plants you want to grow. Our growing experts partners will cultivate the plants in their greenhouses.
- Your JuicyDashboard will show you the current state your plant is at, as it goes from stage to stage: Cloning & rooting to vegetation & mass gain, to flowering & pre-harvesting to finally harvesting.
- Withdraw your profits or purchase a new plant after the harvest is completed.