Founding Fathers’ $500 Million Industry Returns Home
Making Marijuana at Mount Vernon
The global cannabis market is gathering momentum like a runaway freight train coming down a mountain rail.
Just a few years ago, marijuana was illegal around the globe. Then Uruguay legalized it back in 2013. This year, Canada will follow suit.
And it’s gaining ground in more and more countries across the world. Canadian cannabis companies are striking deals with European seed manufacturers to sell marijuana seeds in both Colombia and Australia.
Larger operations are scooping up smaller ones as the industry consolidates. Companies are growing at a rapid clip to create the kind of scale needed to supply massive legal markets such as Canada.
According to Arcview Market Research and BDS Analytics, spending on legal cannabis will hit $57 billion worldwide within the next decade. And over $47 billion of that spending will come from North America!
But that’s not considering the possibility of U.S. legalization.
That could add an extra $45 billion a year to the global market.
And even though the United States got a late start to this race, it’s making up lost ground fast as more and more states and politicians push for legalization.
I Cannot Tell a Lie
We’re all familiar with that old story about our first president chopping down a cherry tree and refusing to lie about it even though he knew his father would be mad.
It’s a nice story and teaches kids a good lesson about honesty. But there’s really no actual evidence it ever happened. In fact, there’s more to suggest it didn’t happen.
But a real fact about George Washington that many folks don’t know is that he was one of the first proponents of cannabis in the United States.
In fact, he planted acres upon acres of it in his fields at Mount Vernon. And he got paid a subsidy by the government for growing it.
You see, cannabis isn’t just a plant that gets you high. Like wheat, there are lots of different varieties.
Some get you high. Some have stronger painkilling properties. And some make excellent fiber.
Grow Hemp for the War
Cannabis, in the form of industrial hemp, was an incredibly important crop in colonial America. Sailing ships needed thousands of feet of hemp rope for rigging. Cotton was extremely expensive, so most clothing — especially for the lower-income classes — was made from hemp.
In the Mid-Atlantic states, it was even more important. That’s because crops like flax that grow well in the North don’t grow here. And crops like cotton that grow well in the South don’t, either.
But hemp will grow forever in the same patch of ground.
And in the 1700s, it was so important that Virginia paid farmers to grow it — much like the U.S. pays farmers to grow crops like rice now.
George Washington took advantage of this program. So did Thomas Jefferson and James Madison. All three founding fathers and future presidents grew acres of the crop.
But in the 20th century, hemp got lumped in with recreational marijuana and was stigmatized as a drug, too.
In the 1940s, production popped to make fiber for ropes, parachute webbing, and uniforms for WWII soldiers. The U.S. government even had a campaign about growing hemp for the war...
But once the war ended and recreational use picked back up, hemp was demonized again.
Founding Fathers Farmers
Now, we’re finally getting to a point where the U.S. is starting to realize the value in homegrown hemp.
It’s a major crop in Europe, China, and Canada. And we import over $500 million of it every year.
But thanks to the loosening of state laws, it’s now legal to grow hemp again in all but 15 states. And that number is destined to grow, seeing as some of those 15 allow legal use of cannabis (or have decriminalized possession of it).
That’s a $500 million industry springing up right under our noses. And nobody’s really talking about it.
But hemp is now growing once again in the storied homes of Thomas Jefferson, James Madison, and George Washington. Monticello, Montpelier, and Mount Vernon are all operational hemp farms again.
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More Than Just Grass
That’s the thing with plants. They’re so adaptable and so resilient. There are so many varieties of just one family.
I bet you didn’t know that corn started off as grass. Crazy, right? But early humans selected the grass with the biggest seeds and cultivated it. Eventually, that grass turned into corn, and those seeds became kernels.
Or did you know that kale, broccoli, cauliflower, and Brussels sprouts are all types of mustard?
It’s the same with cannabis. There are varieties that get you stoned out of your mind. But there are others that have been selectively bred to not get you high, but to help ease pain or reduce seizures.
There are varieties that produce incredibly strong fibers that can be used for fabric and ropes. There are strains that produce oils that can be used in place of petroleum-based ones in plastic manufacturing.
But all analysts are talking about is the kind that gets you all squinty-eyed and hungry. And sure, there’s a ton of profit potential from that corner of the industry. But it’s just a corner. It’s far from the whole thing.
Case in point: Canadian cannabis company Friday Night Inc. (OTC: TGIFF) just announced sales for July from its subsidiaries (Alternative Medicine Association and Infused MFG) in Nevada. The two branches reported 362% sales growth over July 2017.
AMA’s sales were entirely in the kind of cannabis that gets you high. But 85% of Infused’s sales came from CBD products (the painkilling, anti-seizure stuff). And 15% came from its growing line of hemp-based products.
Massive Potential in a Tiny Package
But it’s the other varieties of cannabis that are really going to lead this industry...
Sure, some folks would vote yes for legalization because they want to get high. And some would vote yes because of the massive tax windfall it would bring.
But we’re never going to see federal prohibition lifted if it’s just about money and getting stoned to bejeezus.
It’s the medical side. It’s the industrial side. It’s the real benefits of cannabis that will drive the industry forward.
And there’s one company with a proverbial hand in every card game here.
It’s got exposure to the medical side of the business. It’s got exposure to the industrial side of the business. It’s growing exposure to the recreational side, too.
But it doesn’t grow a single plant. It doesn’t process a single seed. It doesn’t make anything to sell. From the outside, it’s not related to the cannabis industry at all.
But the thing it’s got a monopoly on is something you can’t grow cannabis without, be it recreational, medical, or hemp. If you don’t have what this company offers, you can’t do it.
What’s greatest is that even if cannabis fails in the U.S. — even if it fails around the world — this company’s assets are still just as valuable to other industries.
“100% Guaranteed Profits”
And thanks to a special deal it’s got with the U.S. government, as long as the company is around and you’re an investor, it has to pay you a cut of any cannabis-related cash.
The payments are so big and so steady that I’ve taken to calling them “reefer royalties.” I’ve personally collected four so far myself. And they’re already pumping up the profits in my Roth IRA.
Oh yeah, that’s right. I forgot to tell you. I consider this investment so safe and such a sure thing that I’m holding it in my retirement account.
It’s not in some trading account for speculations and gambles. It’s where I put the investments that are going to carry me through my later years, not where I put junior mining companies and penny pot stocks. It’s in there with companies like Stanley Black and Decker and Realty Income — blue chips.
And I want you to get this company in yours, too. It’s practically guaranteed to fund your retirement singlehandedly. And it is guaranteed to pay you steady income for as long as you’re invested.
It’s the best marijuana-related investment I’ve come across.
In fact, it’s so good that the founder of our company — who’s avoided cannabis investments like the plague — put it in his retirement account immediately. He says it’s “the only cannabis stock [he’ll] ever own.”
And we both think if you’re going to invest in the industry at all, it’s the one stock you must have in your portfolio.
So, take a few minutes to hear what our founder has to say about this amazing investment. Or click here for a written report you can read at your leisure.
Just don’t delay much longer. Every day that passes is a day closer to parabolic marijuana stock growth. And every day your potential profits get just a little bit smaller.
If you don’t act soon, you’re going to be watching one of the biggest rallies in history from the sidelines. And the millions of dollars in profits will be flowing into somebody else’s account.
Do yourself a favor and get invested now. For less than the cost of a dinner on the town, you could get yourself set for life.
I don’t know about you, but I’ll give up a steak or two if it means I’m going to be eating caviar when I retire.
Don’t delay. Click here to learn more.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the assistant editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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