5 Reasons To Invest In The CBD Industry

Jul. 30, 2019 3:01 PM ETCVSI, CWBHF, CWEB:CA17 Comments
SKK Investments profile picture
SKK Investments


  • The CBD industry is on a rapid growth trajectory due to increasing public interest in the space.
  • The two largest publicly-traded companies in the space are Charlotte's Web and CV Sciences, which we believe deserve a close look.
  • While there are several regulatory, competitive, and other risks to our thesis, we are optimistic about the future of the CBD industry.

We have written a number of articles covering CBD companies but have come to realize that much of the public (and investment community) is either unaware of or unfamiliar with CBD. In this article, we will spend some time familiarizing investors with the industry and publicly-traded companies in the space.

1. CBD's Popularity is Skyrocketing

The WSJ, Bloomberg, New York Times, Forbes, and other major news organizations have recently published pieces on the compound, which has become the focus of intense public interest and scrutiny. In our view, this is because there is growing public awareness of mental health issues such as anxiety and depression along with a focus on treating such issues. CBD has emerged as a potential way to treat these problems, which has made it a topic of popular interest among Americans.

Another reason why CBD is generating so much buzz is because it does not have any of the intoxicating properties of its cousin THC, rendering it (mostly) free of the stigma associated with cannabis. In addition, many who may not be able to use marijuana for personal or professional reasons may be likely to try CBD as an alternative. Unlike THC-based marijuana, CBD does not show up on drug tests and does not impair one's judgment or ability to work.

CBD also recently passed marijuana in terms of search interest in the United States, a strong signal that CBD is gaining significant momentum:

(Source: Google Trends)

We believe that increasing search interest is a leading indicator of increasing CBD sales across the United States and demonstrates that the following is occurring right now:

  • People across the United States are beginning to hear about CBD from friends, family, the media, and other sources.
  • They are likely using Google to find out more information about the compound.

This article was written by

SKK Investments profile picture
Currently focused on a mix of value and technology. Our target industries constantly change based on our ever-evolving investment theses. DMs are open for ideas. We collaborate with Seeking Alpha Contributor Shot_Caller for idea generation.

Disclosure: I am/we are long CVSI, CWBHF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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