KCSA's Cannabis Investor Survey Finds Investors Flocking to Cash in on Cannabis
NEW YORK, May 6, 2019 /HalcyonTV/ -- Retail investors are rolling in the green, with fifty percent pulling money from other investments in order to capitalize on the opportunities to participate in the cannabis gold rush. The inaugural Cannabis Investor Survey was conducted among more than 250 retail cannabis investors by KCSA Strategic Communications, an integrated strategic communications firm specializing in public relations, investor relations and social media. The overriding theme of the survey result is that retail investors are bullish on cannabis stocks, as 90 percent of respondents report making money off of their stocks, and 40 percent own 10 or more cannabis companies in their investment portfolio.
"Cannabis has graduated from being viewed as a high-risk, exotic or fringe investment, to a mainstream staple of retail investors' stock portfolios," said Todd Fromer, Managing Partner at KCSA Strategic Communications. "Our survey suggests that individual investors are selling their positions in traditional stocks in order to invest in cannabis stocks."
Investors Are in It for The Long Haul
Not only are a majority of investors betting big on the burgeoning cannabis industry, they view cannabis as a long-term investment. In fact, 80 percent of investors surveyed noted that they plan to hold onto their cannabis investments for between 1-10 years. Retail cannabis investors are significantly overweighting cannabis, which comprises more than a quarter of their overall portfolio, according to 40 percent of respondents.
No Fed Fear Here!
According to KCSA's findings, retail investors believe that cannabis has effectively been de-risked. In addition to going all in on their cannabis investments, for a majority of the retail investors surveyed (84 percent), federal illegality of cannabis is not impacting their decision to invest in the sector.
Retail investors aren't afraid to invest in companies that touch the plant. In fact, a surprising majority of investors were evenly split among companies that touch the plant—medical, adult use and CBD/hemp—while being less bullish on companies that provide ancillary services, and do not touch the plant.
Business Sector % Responses
Adult Use 40%
"Cannabis investors appear unafraid. As they continue to invest without fear of federal illegality of cannabis and without concern regarding companies that touch the plant, we expect this sentiment will only grow as more and more states expand medical programs and pass recreational use laws," added Lewis Goldberg, Managing Partner at KCSA Strategic Communications and host of The Green Rush podcast.
KCSA's Cannabis Investor Survey, which was conducted in March 2019, collected data from more than 250 retail investors currently investing in cannabis. The net worth of the respondents varied in range, with 51 percent citing a net worth of between $100,000 and $500,000 and 49 percent citing more than $500,000.
About KCSA Strategic Communications
KCSA is a fully integrated communications agency specializing in public relations, shareholder communications and social media, with expertise in cannabis, financial and professional services, technology, healthcare, digital media and energy. Since 1969, the firm has demonstrated strategic thinking and program execution that drives results for its clients in the ever-changing communications and digital landscape. The firm's clients are its best references.
KCSA's cannabis practice, which is one of the largest in North America for public relations, investor relations and social media, has been representing companies in the cannabis industry for more than five years. Clients span the entire supply chain from companies that grow the plant, process it and dispense it, to companies that provide consulting services, financial services and even ancillary products such as lighting, nutrients and packaging.
For more information, please visit www.kcsa.com or www.kcsa-cannabis.com.