During gold rushes of the past, the vendors selling picks and shovels often made more money than the gold miners did themselves. It’s a similar story with the cannabis industry. Companies that provide critical products and services to cannabis operators can sometimes generate higher profits than pure-play cannabis companies. In this Fool Live video, Healthcare and Cannabis Bureau Chief Corinne Cardina and longtime Motley Fool contributor Keith Speights discuss a fantastic pick-and-shovel marijuana stock to buy right now: Innovative Industrial Properties (NYSE:IIPR).
Corinne Cardina: Let’s dive into some pick-and-shovel stocks, ancillary stocks. These companies get either some or most of their revenue from the cannabis industry, but their core operations are not in growing and selling marijuana. A lot of times, that can insulate them from potential regulatory risk. It diversifies their business.
These are very interesting. The first one is heavily dependent on the cannabis market,…
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