Conclusion Conclusion
After taking an honest look at all facets of the cannabis sector, the absurdity of lumping it together and comparing it to corn becomes apparent. It is far more accurate to compare the recreational cannabis market to alcohol and the medical market to pharmaceuticals.
The opportunities for differentiation are nearly endless. Firms are creating genuine lifestyle brands, and consumers have tastes and preferences that vary drastically. Like the trend in everything else humans consume, they are evolving towards demanding greater variety and quality.
While it is true that certain areas of the sector are commoditized or soon will be, to say that the cannabis sector as a whole is just another agricultural commodity, and therefore has no chance for economic profit, is to make a drastic misjudgment and pass up the amazing opportunity that is being presented. That would be like saying there is no profit in alcohol or pharmaceuticals.
The idea that a cannabis companies only value the cost of replacing the physical assets is just absurd. The people making these claims do not understand the sector. In closing, don’t think of cannabis investing as getting in on early stage corn farming, view it as investing in alcohol at the end of prohibition or a pharmaceutical company with a promising new treatment.