Warren Buffett investing in cannabis industry

israel_high_free_marijuana

Warren Buffett is looking to profit from pot.

Ice cream, candy and soft drinks helped make Warren Buffett a billionaire. Now a subsidiary of his Berkshire Hathaway Inc. is seeking to profit from pot.

Cubic Designs Inc., a unit of Berkshire’s MiTek business that makes platforms for maximizing usable floor space in warehouses, sent about 1,000 fliers to weed dispensaries in recent weeks, offering to help growers expand the number of plants they cultivate.

“Double your growing space,” the flier reads in capital letters, above an image of an indoor facility with rows of plants. Another page says, “Grow your profits.”

The entreaty coincides with increasing acceptance of marijuana in the U.S. Two states, Colorado and Washington, legalized possession and recreational consumption, and are among 23 where it can be used as medicine. It’s banned under federal law, and banks have said they won’t work with the industry until it’s legal nationwide.  

Cubic Designs spotted the opportunity after a few pot growers approached the firm about its platforms, or mezzanine systems, according to Shannon Salchert, the company’s marketing coordinator. Warehouse space has gotten tight in places like Denver, where growers are looking for facilities to cultivate their product. That demand has allowed landlords to raise prices.

“We sold a few mezzanines into that market and decided internally, ‘Why don’t we do some marketing?’” Salchert said today in a phone interview.

Buffett is not a silly man, he knows where the bucks are to be made, and right now it is industrialising cannabis cultivation.

We are now approaching the tipping point with legalisation. As more and more states, and then countries legalise we are going to be forced into a position where a decision will have to be made.

According to many NZ produces some of the best weed int he world…time to expand out export markets I think.

 

– Bloomberg


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