Wall Street Oasis logo

  • Recent
    • All Recent Content
    • My Recent Posts
    • My Bookmarks
    • WSO Chat Room
    • Top WSO Bloggers
    • Hot Topics - Week
    • Hot Topics - Month
    • Hot Topics - Year
    • Hot Topics - All Time
  • Forums
    • Post Forum Topic
    • Highest Ranked Posts
    • Most Commented
    • WSO Chat Room
    • Job Search Advice
    • Investment Banking
    • Private Equity
    • Venture Capital
    • Trading
    • Consulting
    • Hedge Funds
    • Corporate Finance
    • Equity Research
    • Asset Management
    • WSO Success Stories
    • Other Careers
    • Business School
    • Resume Forum
    • Wall St. Fashion
    • Wall St. Mentors
    • Monkey Around
    • Monkey Marketplace
    • Site Suggestions
  • Groups
    • Browse Groups
    • Create Group
    • My Groups
  • FAQs
    • FAQs
    • WSO Company Database
    • WSO Finance Dictionary
    • About WSO
    • Press
    • Contact Us
    • RSS Sitemap
    • Advertise on WSO
  • Events
  • Login
  • Sign Up!
  • Company
    Research
  • Modeling
  • Mentors
  • Video
    Library
  • Interview
    Guides
  • Job Board
  • Resume
    Review
  • Discounts

Want the Secrets to Succeed on Wall Street?

Click below to get access to our Free Wall St. Compensation Report and more.

About WSO
Wall Street Oasis » Blogs » DoctorEvil's blog

Capitalism, Investment, and Weed: You Gonna Get So HIIIGGHHHHH Forum's RSS Feed Share

DoctorEvil's picture
DoctorEvil
     O
 
 
(Senior Orangutan, 432
 
Points)
 on 6/28/10 at 11:35pm
medical_marijuana.jpg

For struggling industries, capitalism can be a real hose beast. Take an example that's close to my heart: the once plucky journalism. The Federal Trade Commission published a report this month advising the government to financially support the re-invention of journalism because existing newspapers and mags et al are having such a tough time creating sustainable business models. And because journalism is the Fourth Estate, muthaf**ka.

I, personally, support any institution of policy that would prevent the further decline of traditional media -- but others might hold this governmental intervention as a direct affront to capitalism because one might say those resources could be better utilized elsewhere. BUT, regardless of whether or not you're a gun-stroking libertarian, it's hard to deny that capitalism makes some strange bedfellows -- and when it begins to interact with nontraditional, young industries especially -- hilarity ensues. (And heartbreak. And gov'ment intervention. And opportunity. YAY!!!!!)

Par exemple, I give you The New York Times' recent feature on the burgeoning marijuana industry in states like Colorado (where the sale of medical marijuana is legal) and the regulatory rules, taxation, etc being devised to curb the new green market. In Colorado alone, there are over 1,000 dispensaries and the estimation is that more than 80,000 people have weed certificates. Weed is becoming a big, legit business. Albeit a strange one.

Though I have to say, for me, the idea (and process) of the weed market being legitimized is absolutely hilarious. Even if I were to legally visit a weed dispensary, I would make my pharmacist meet me in some sketchy alleyway and would insist on her ripping me off and maybe knifing me once or twice.

Not to mention ... the medical marijuana business is raking in millions, and some dispensaries are turning into high-end boutiques or "wellness centers" that offer pilates and massage, etc. Many dispensaries end up looking like a Pottery Barn or some fruity apothecary. White people find a way to take the soul right out of everything ... even WEED DEALING! It's madness, I tell you. Reefer madness.

But don't think just because you've worked on Wall Street or have been to BUSINESS school that you can just go in and outwit those lazy stoners and become the Sergei and Larry (the Google guys) of the reefer industry ... according to Ravi Respeto, manager of The Farmacy, an upscale dispensary in CO, “No M.B.A. program could have prepared me for this experience,” she says, wearing a cream-colored smock made of hemp. “People have this misconception that you just jump into it and start making money hand over fist, and that is not the case.”

I would consider working at one of these establishments, IF I DIDN'T HAVE TO WEAR A HEMP SMOCK. I refuse to do that on principle. Sounds like Cold Stone. Though, "Hemp Smock" is definitely a great name for my one-man jamband. Our hit singles "Veggie Burrito" and "Quit Burnin' My Trees" should be hitting Starbucks near you soon.

Yup, life is hard for the small business owner ON WEED. You have to deal with the growers, government restrictions, oh and maybe some gang wars and irate Colombian drug lords. The weed market is still in its wild west phase and likely will be for quite some time, but there are still plenty of ways to get high ... PROFITS!!!!

You see, as the article informs us, weed is a $25 billion industry in the U.S. -- so, as it goes legit, there's going to be some serious tax revenue from its sale as medicine. Doctors are already figuring this out. Need convincing? Well, those risk-loving investors in the financial industry can smell a crisp dollar bill from 8 miles away... "We’re past the days when people call here to ask if marijuana will give men breasts,” says Allen St. Pierre, the executive director of Nat'l Org. for the Reformation of Maryjane Laws. “Now, the calls are from angel investors, or REITs — people who are looking for ways to invest or offer their services.”

Marijuana may not give you a new pair of DD's, and it may not be an immediate gateway to unemployment and child abduction, but its legal sale does seem to offer plenty of opportunities to make money if you know where to look and put in some research. But first you'll have get on the wagon so you can stop thinking your tv remote is your portable phone.

What's more, there are already a few cannabis companies that have gone public. Investment opps abound. But, FYI, as this guy says, like the gold rush, money may not be made by the miners, but by the suppliers.

Now, I personally do not smoke marijuana anymore. Marijuana took my baby. And left some Phish CDS hanging around. So I don't condone this kind of behavior, but that doesn't mean I'm not willing to experiment. For money. So I'd like to hear your (serious) thoughts about this new industry. What say you?

  •  
  •  
  •  
Tags:
  • weed
  • market
  • Economics
  • capitalism
  • business

Comments

CarolinaHeels12's picture

Aren't they trying to pass a

CarolinaHeels12
     ST
 
(Monkey, 56
 
Points)
  on 6/29/10 at 1:15am

Aren't they trying to pass a bill in the California legislature that would legalize weed all across the board? I'd be surprised if big Tobacco don't have their resources ready to pounce if widespread legalization happens.

  •  
  • 0
  •  
levelworm's picture

Can we assume that the mafia

levelworm
     O
 
(Orangutan, 282
 
Points)
  on 6/29/10 at 1:55am

Can we assume that the mafia has a large slice in these kinds of buisness?

Oh well, the government is the biggest mafia family.

  •  
  • 0
  •  
Unforgiving60's picture

Yea man! Why can't the Gov

Unforgiving60
    
 
(Senior Chimp, 17
 
Points)
  on 6/29/10 at 2:32am

Yea man! Why can't the Gov prop up every failing biz, get my house out of foreclosure, and get my bank to cancel my $80,000 credit card debt! And my uncle just lost $2 Billion on his FX desk.. and no one is there to save him!

This is America. The whole point of this country is you eat what you kill. The gov is slowly killing good businesses and good work ethics by making the hardest working people and most profitable businesses slowly subsidize more and more of the laziest and least motivated.

However, weed as a legal business is inevitable in the US. Just wait for the boomers to leave the Hill.

  •  
  • 0
  •  
Victor252's picture

1,000 weed shops and 80,000

Victor252
     O
 
(Orangutan, 355
 
Points)
  on 6/29/10 at 10:55am

1,000 weed shops and 80,000 users? That's only 80 people per shop. I'll invest my capital elsewhere. Now, 1,000 shops and 1,000,000 customers would be another story. It all depends on the doctors prescribing the weed.

  •  
  • 0
  •  
Midas Mulligan Magoo's picture

Lol, I read one of those Cali

Midas Mulligan Magoo
    
 
(Senior Neanderthal, 5,250
 
Points)
  on 6/29/10 at 11:36am

Lol, I read one of those Cali related articles, the focus was on "all the poor single mothers working at weed farms who will lose their jobs if it gets legalized". Liberal idiots chasing their own tails.

Where I unload on Twits and take verbal S***s

  •  
  • 0
  •  
TabulaRasa's picture

Marijuana is the USA's

TabulaRasa
     O
 
(Senior Monkey, 92
 
Points)
  on 6/29/10 at 2:07pm

Marijuana is the USA's biggest cash crop. It's all over big cities, it's all over rural areas, it's in schools and on street corners. Even Wall Street traders can't resist a good burn on the weekends. There will definitely be opportunities for investment should marijuana become legal. Only then will the true pervasiveness of its use be revealed.

  •  
  • 0
  •  
DoctorEvil's picture

Victor252 wrote: 1,000 weed

DoctorEvil
     O
 
 
(Senior Orangutan, 432
 
Points)
  on 6/29/10 at 7:07pm
Victor252:

1,000 weed shops and 80,000 users? That's only 80 people per shop. I'll invest my capital elsewhere. Now, 1,000 shops and 1,000,000 customers would be another story. It all depends on the doctors prescribing the weed.

Apparently, the estimates are that there are about 400,000+ people in the U.S. with medical marijuana certificates. However, that number has more than doubled in the last 5 years, and the NYTimes claims that Colorado is gaining 1,000 registered users per day. Currently, there are only 14 states where medical marij. is legal. As the number of states with legal distribution rises (11 states have pending legislation), and when California potentially legalizes across the board in November, AND as soon as physicians realize they stand to make a lot of money prescribing, the total number of certificates in the U.S. will skyrocket. The numbers may then finally justify big investments, methinks...

  •  
  • 0
  •  

Related WSO Content

  • Capital IQ question: How to use an industry filter to have it give you companies that own a certain % of market share or greater
  • Do you have to major/minor in econ to get into IB?
  • When are the good times gonna get rollin'?
  • Should I ask.. Or is it gonna get me dinged?
  • Barclays Capital Markets vs. Morgan Stanley Capital Markets
  • If You're Gonna Be a Bear...
  • Julian Robertson Gonna Put You on a Diet, Fatty
  • Gonna Have a Lot of Free Time Until July
  • Greece is gonna default now or after two years?
  • Gonna A Run A DCF, Need Ideas for Companies to Use

Forum Topics

  • New
  • Active
  • Rank
  • Comments
  • Hey folks, BlueFly is having a 2-day "Mystery Sale" during which the discount ranges from 10-50% off. Seems that most items are at least 25% off, from what I can find. Thinking of pulling the trigger on a pair of Ferragamos so I can pretend to keep up... There are some good deals...
    BlueFly Sale
  • Not sure how many of you monkeys have been to this site or heard of him before, but David Thorne is hilarious. He trolls on anybody and everybody he can and published his shenanigans for our enjoyment. If you have a few minutes, I recommend reading these. A few of WSO's own trolls should...
    David Thorne: World's Greatest Troll
  • I've been looking everywhere for this: how much of the of the facebook IPO went to facebook itself? not to Mark, not to peter thiel, not to eduardo, etc. How much of the IPO went for the Facebook Inc. corporation?...
    Facebook: so who got the cash?
  • Have you ever thought about the metrics that we, as smart, frequently "target-educated" (I vomited a little in my mouth as I wrote that), set for ourselves? And more importantly, how absurd they are? Having read WSO for a long time, lots of people, myself included, dish out advice to...
    Challenges and Failures
  • As we all know a first year analyst has to make a decision around this time of the year: a) take part in PE/HF recruiting for a job that would start after his/her two year commitment, or b) be a good monkey and stay out of the recruiting process because his/her firm prohibits it / it is a conflict...
    GS Analysts Fired For PE Recruiting
  • Sometime ago I posted this topic about how Google is giving Cornell University its NYC HQ as a temporary campus (for 5 years): http://bit.ly/LDoivn Now, Twitter seems to be jumping onboard too: http://bit.ly/LqjGCn Do you think this will change the dynamics of the tech industry over the next...
    NYC vs Silicon Valley
  • Let's say I am looking at the following formula in a cell: =('Page 1'!I282)*('Page 2'!A100). If I want to see the precedent, I hit CTRL + [. But this will only take me to the first term. How can I see the second term without hitting F5 & pasting in 'Page...
    excel shortcut question
  • A few days ago I saw a piece on Mark Cuban's blog talking about the college landscape and student debt burden. While I disagree with him that everyone can be an entrepreneur and find a "billion dollar opportunity", I did find myself wondering about the future of financial...
    Industry Trade Schools - Viability as an Alternative?
  • I'm looking for advice to help me choose between two courses of action to try to break into PE. My background -Enlisted military -Undergrad: 4.0 in Liberal Arts major at non-target school -GMAT: 730 (first time with no prep courses- I could bring it up if I had to) -No consulting...
    Analyst Position or B-School?
  • Iv been trying to evict this peace of shit for 3 months now but don't like the lawyer I have. He seems overly incompetent. It is a commercial lease and the guy hasn't paid rent or utilities in 9 months. If you know of a good real estate litigator or someone who can help me evict this...
    Trying to evict a deadbeat. Anyone know a lawyer in NY?
  • hello I'm a student of economics from spain with a GPA of 3.3. I'm studying in a local university. actually I'm in the 3rd year of the degree so the next is going to be the last one. I want to focus my career on finance and I have some doubts regarding to the netx step: -...
    Breaking into wall street/the City
  • The playoffs have had their moments but something has been missing for me. Perhaps the over-hype let me down a little, but thats another story. I expect Miami to win against the Pacers now, and I like OKC over the Spurs primarily because they have no one to match up with KD or Westbrook even...
    KD/Westbrook v Wade/LeBron?
  • They say the customer is always right, and when you're as dependent upon your "customers" as the US government is, I suppose it pays to offer top notch customer service. <a...
    China Mainlining US Treasuries
  • Breaking up may have been hard to do for the Carpenters</a>, but it seems to be easy to do for some companies. Here are just &nbsp;a few examples of companies that have announced plans to dismember themselves, in the last few months:</div> <ol style="text-align:...
    Breaking up is easy to do...
more

Highest Ranked Content

  • Week
  • Month
  • Year
  • All Time
Plus make sure to see my post <a href="http://www.wallstreetoasis.com/blog/how-i-got-a-770-on-the-gmat-with-minimal-effort-while-working-banking-hours%E2%80%A6">How I got a 770 on the GMAT with minimal effort while working banking...
phantombanker's GMAT Study Guide
A week or two ago there was an article written about how your weight might inversely effect you during the hiring process. During the conversation I dropped some personal information about me losing 130 (now 135 pounds). I was PM’d by somebody asking me to tell my story. Well I have some free...
How finance saved and gave me a life
Hey guys, it’s been some time since I posted regularly on this site. That’s what happens when you start working in finance; you don’t have any time. So why am I posting? It’s because I am seeing an injustice being done to a lot of military guys (and gals) who are discovering they want to...
To all Military who want to work in IB/PE/Consulting
<em>Mod (Andy) note: </em><a href="http://www.wallstreetoasis.com/blog/phantombankers-gmat-study-guide">Here is the link to his study guide</a> Background: I recently took the GMAT and scored a 770 on my first and only try. Long story short, I studied and took...
How I got a 770 on the GMAT with minimal effort while working banking hours…
There was much wailing and gnashing of teeth at the close on Friday over the perceived lack of performance in the Facebook IPO. The stock priced at $38, opened at $42.50 (after a few hiccups at the NASDORK), and closed at exactly $38 after an effort by the syndicate members akin to the Spartans at...
IPO Pricing 101
<a href="http://www.wallstreetoasis.com/blog/what-does-the-labor-participation-rate-say-about-our-society">Back on the topic of what the composition of the labor force says about our society</a>, the New York Times recently put out this <a...
Grandpa And Grandma Are Taking Our Jobs
The Clear Admit Shop currently has <em>free b-school "snapshot" guides</em> <a href="http://clearadmit.shop.studylink.com/index.cfm?onsale=1">available for download here.</a> The guides aren't terribly comprehensive, but can serve as a...
Free B-School Guides!
There she is again: Diane Sawyer, the primary ABC evening news anchor, with another installment in their interminable series of reports on imports and employment in America. I could just strangle her. One week their (alleged) reporters go to people’s houses and look at everything the occupants...
Sawyer’s Syndrome: The ABCs of Trade and Employment
Fellow Primates, We are looking for 1-2 students on each campus to help WSO in its sales efforts to student clubs/career centers, and overall promotion at your school both online and on the ground. Below is a description of the position and benefits...thanks in advance for your help! <a...
WSO Campus Representative Program
Hey Guys, Been using this site for a while now and figured it would be beneficial for me to give back a bit. For starters, I thought I would detail my experiences using linkedin and cold emails to land a summer offer. Coming from a semi-target undergrad b-school, I had my hands full....
How I used LinkedIn to get Interviews and Land Offers
more

Recent Jobs

  • Private Equity Summer Intern
  • Senior Business Analyst
  • Derivatives Regulations Analyst
  • Portfolio Loan Account Analyst (Entry Level)
  • Hedge Fund Accountant
more

Poll

What's your favorite Finance-related movie?
American Psycho
18%
A Good Year
1%
Barbarians at the Gate
2%
Boiler Room
5%
Enron: The Smartest Guys in the Room 
3%
Glengarry Glen Ross
1%
Harold and Kumar
6%
Inside Job
2%
Margin Call
16%
Other People's Money
0%
Pursuit of Happyness 
7%
Rogue Trader
1%
The Family Man
1%
The Game 
2%
Stocks and Blondes
1%
Trading Places
6%
Wall Street
25%
Wall Street 2
3%
Total votes: 435
  • 38 comments
  • Older polls

Silver Banana Rankings

  • Silver Banana Leaders
  • Soiled Monkeys
UserSilver Bananas
TNA847
Edmundo Braverman757
CompBanker747
happypantsmcgee651
IlliniProgrammer548
UFOinsider460
Nouveau Richie377
Midas Mulligan Magoo369
TheKing342
cphbravo96339
more

Top WSO Members

  • Total Bananas
  • Active Monkeys
UserBanana Points
TNA11674
Edmundo Braverman11059
WallStreetOasis.com10273
happypantsmcgee9333
UFOinsider8166
CompBanker7796
IlliniProgrammer7662
Midas Mulligan Magoo5250
monty095150
cphbravo964434
more

New groups

  • The Houston Contingent
  • Corporate Development (M&A)
  • Business Majors
  • Rounders
  • New York Yankees
  • Frustrated NYC Bankers
  • 2012 Houston FT
  • WSO Running Club
  • Venture Capitalist
  • Calgary Finance Industry
more

© 2006-2012 WallStreetOasis.com | All Rights ReservedAdvertise | About Us | Contact Us | FAQs | Site Map | Links

As Seen In

 
 
 
 
 
 
 

Sister Site

Syndicate content