2 Cannabis Stocks You Can Buy and Hold for the Next Decade
It's hard for investors to get excited about cannabis stocks these days because they have had such a tough year thus far. The ETFMG Alternative Harvest ETF is down more than 42%, and the AdvisorShares Pure Cannabis ETF has lost 55%. The underperformance is based on declining earnings for many cannabis companies.
However, there are a few companies in the industry whose business models are still quite strong, even if their share prices have fallen along with their competitors. The global cannabis industry is expected to reach $197.7 billion by 2028, clocking a compound annual growth rate of 32%, according to a report from Fortune Business Insights. So it makes plenty of sense to buy quality cannabis stocks now, while their valuations are low.
AFC Gamma (NASDAQ: AFCG) may be one of the best deals out there among cannabis stocks -- a profitable company with first-mover status and triple-digit growth in the last quarter. I'm also impressed by Trulieve Cannabis (OTC: TCNNF) because it had already shown the business acumen to run a profitable cannabis company before it really expanded with its $2.1 billion purchase last year of Harvest Health and Recreation. The resulting company is the biggest multistate operator (MSO), and with that size comes certain economies of scale that will serve it well in the future.
Source Fool.com
