But most marijuana stocks are penny stocks, and penny stock prices are notorious for volatile price swings.
That’s why we found a way for risk-averse investors to make money in the marijuana industry through what we like to call a “pick-and-shovel” strategy.
The term “pick and shovel” derives from the entrepreneurs during the 1848 to 1855 California Gold Rush who sold supplies to the miners. While only a few miners struck it rich, every miner needed supplies, and these suppliers made a ton of money.
For example, Levi Strauss made durable trousers for the gold miners in 1853, and his estate was worth $6 million when he died in 1902.
That $6 million would be worth $168 million in 2018 terms.
To help our readers build their own fortune, we’ve found one of the best pick-and-shovel plays there is in the cannabis industry: banking.