2 Smartest Cannabis Stocks to Buy in 2022 and Beyond
It's been a brutally tough bear market for cannabis investors. Shares of the AdvisorShares Pure US Cannabis ETF have collapsed by more than 72% over the last 12 months, and there's no relief in sight thanks to a return-destroying toxic sludge of inflation, rising interest rates, fears of a recession, and a general distaste for growth stocks of all stripes.
In such an environment, investors need to be smart -- and that means thinking about buying shares of businesses that aren't subject to the same headwinds as others in the industry. Let's examine a pair of pot stocks that are capable of growing even in the face of external conditions that can seem a bit pessimistic.
As a real estate investment trust (REIT), New Lake Capital Partners (OTC: NLCP) isn't an everyday marijuana stock because it'll never need to sell a single nugget of cannabis to deliver for its shareholders. Instead, it does sale leaseback transactions where it trades cash in exchange for cultivation and retail properties, which it then leases back to the seller to create a rental income stream. In short, New Lake is a smart cannabis stock because it's profitably trading the shovels competitors need today for more valuable and longer-lived assets during the industry's gold rush.
Source Fool.com