The Minyanville PotFolio: 20 Stocks to Play the Continued Legalization of Marijuana

By Josh Wolonick  JUL 03, 2013 12:01 PM

Thinking about investing in the legalization of marijuana? Here's our hypothetical portfolio for your consideration.

 


A full 19 US states allow the sale and use of medical marijuana. After last November's initiatives, pot is legal in Washington and Colorado. Though marijuana is still illegal in the eyes of the federal government -- a fact that occasionally results in raids of dispensaries in legalized states -- the legalization of pot continues to pick up momentum. Naturally, investors want to know how to cash in on how the times are a-changin', and so, for your consideration of this growing and increasingly more legitimate opportunity, here is Minyanville's hypothetical pot portfolio.
In addition to these mid- and large- cap stocks, there are many micro-cap stocks that are involved directly or indirectly with marijuana. It it worth noting that, as these companies are so small, they are extremely risky for investors and therefore unsuitable for a model portfolio. 

Keep Your Eyes Peeled for New Ventures

James Shively, a former Microsoft Corporation (NASDAQ:MSFT) executive and marijuana entrepreneur, wants to bring in $100 million in investments to create "the most recognized brand in an industry that does not exist yet." Shively wants to establish "the Starbucks (NASDAQ:SBUX) of pot." 

And for every Starbucks, there is the alternative with Dunkin Donuts (NASDAQ:DNKN), the cheap play McDonald's (NYSE:MCD) McCafe, Maxwell House (NASDAQ:KRFT) for home consumption, and many others options. Representing a potentially huge change to our national identity and culture -- then again, maybe we're underestimating pot's influence on our culture to date: Steve Jobs, founder of Apple Inc. (NASDAQ: AAPL), was known to partake -- the full legalization of marijuana would open countless opportunities for entrepreneurs.  Be vigilant in looking for opportunities to ride the expected wave of legalization.

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Position in MO.