Report: MJ Investors Are Younger With Less Capital

382-pxKlq.AuSt.55A new report by stock tracking outfit SigFig reveals an interesting profile of investors in marijuana-related stocks: they are younger, more likely to be from bigger states like New York and California, and betting less money on publicly traded companies.

On average, marijuana stock investors are typically under the age of 40 and have less than $100,000 worth of liquid asset to invest. By comparison, an average investor in tobacco companies would be nearing 60, with about $600,000 to invest, according to SigFig and as reported by CNBC.

Further, those from more liberal states are more likely to buy publicly traded cannabis stocks, particularly of GW Pharmaceuticals, Medical Marijuana Inc, Hemp Inc, and Growlife. Meanwhile, investors who are wealthier, older, and more conservative – usually from the south – lean more towards putting money into tobacco stocks.

These findings about investors are part of SigFig’s comprehensive report on investing in so-called sin stocks. It touches on not only the marijuana industry, but also the alcohol, tobacco, and gambling industries as well. To compile the report, the firm used data from some 230,000 investors and returns until April 13.

So far, marijuana and casino stocks have underperformed, while those of alcohol and tobacco have excelled, according to a related CBS News story. However, even alcohol and tobacco stocks could not be on par with the overall index of Standard & Poor’s 500.

But marijuana, as a budding industry, remains optimistic on its own pace. Last year, cannabis stocks spiked over 900% in the first quarter, but fell back in the following three. According to investment analysts, the general outlook for marijuana stocks is positive and strong, but frail businesses will be sifted out if they have a “toxic” management structure.

Meanwhile, the marijuana markets in different states continue to show signs of progress. One example is Washington State, where retail sales of recreational pot have almost doubled since the start of the year.

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