Are Marijuana Stock Investments a Good Idea?

03/04/2014 10:43 am ET Updated May 03, 2014

Most individuals associate investing in the marijuana industry with opening a marijuana dispensary are starting a colossal grow operation. But it just so happens that making greenbacks off the green rush may be easier than one might think. We're talking about investing in marijuana-related business stocks.

As of right now Wall Street doesn't cover the marijuana market as an industry but professional investors such as Todd Harrison, CEO and founder of Internet-based financial media company MInyanville, feels that once legalization is more widespread, that will be the inflection point when investing in marijuana businesses moves into a conventional arena.

Presently penny stocks are all the twitter, but according to Harrison they're not worth the risk factor and he steers clear from obtaining them.

"I don't touch them, they're very risky," Harrison explained of penny stocks. "There's a reason they're not listed on the exchanges... they're not recognized. They go up and they go down. They're very volatile."

But fret not, penny stock prospectors, there is still solid hope for investing in dope!

According to Harrison, the marijuana industry "will be the single best investment idea for the next ten years."

The legal recreational/medical marijuana marketplace is estimated to grow 64 percent to $2.34 billion in 2014 from $1.44 billion, according to a recent report by marijuana investment and research firm Arcview Group.

The astronomical 500 percent growth that GW Pharmaceuticals' stock experienced since summer of 2013 can be used as an example of how rewarding marijuana stocks can be to your financial portfolio.

Other investors recommend avoiding these stocks until marijuana is legal throughout the entire United States.

All stocks have their pros and cons, so it's best to investigate the company thoroughly before you decide to invest in any type of business.

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