The year: Early 2016.

The place: A small publishing office in Delray Beach, Florida.

That’s when former Wall Street executive and fund manager Teeka Tiwari walked into the offices at Palm Beach Research Group and told our publishers he wanted to write about a revolutionary idea: cryptocurrency.

Many of you now know Big T as one of the world’s foremost experts in cryptocurrency investing. But at the time… the idea was laughable. And our entire office was highly skeptical.

Not only were cryptocurrencies extremely niche, they came with a bad reputation of being the favored form of tender on notorious underground “Darknet” websites like Silk Road.

Our publishers worried cryptos would have trouble finding real-world, legitimate applications and our readers would lose their shirts investing in them.

But Teeka was adamant. He knew crypto had the capacity to revolutionize our understanding of money, how we transact, and democratize an entire sector.

In fact, his passion was so strong, he managed to convince a number of people in our office – myself (William) included – to get in on this trend then, before it took off. And well before it became mainstream news.

Fast forward to today, and it’s a different story… Cryptocurrencies have grown to a total market cap of $1 trillion. Wall Street behemoths are desperate to get a cut of the action. And regulatory bodies are expressing the need to find a way to incorporate the benefits of crypto technology into our financial system.

And Teeka’s readers who had the courage to take the plunge into the unknown and bought his recommendations at the outset of 2016? They’re since up a massive 8,824% on bitcoin and 15,121% on Ethereum.

Those are life-changing gains.

Of course, it wasn’t a straight shot up. There were plenty of dips and bruises along the way. At one point, Ethereum was down as much as 94%. But losing faith would have resulted in missing out on the gains readers eventually reached.

The moral of this story is when you do your homework on a misunderstood idea that is set to explode higher… even when sentiment and “common” wisdom don’t agree… you could set yourselves up early for life-changing gains.

Right now, we believe we’re in the early days of another misunderstood sector that’s been the victim of poor sentiment in recent years. It’s been associated with criminal behavior, and the federal government still has strict restrictions in place for companies that deal in it.

But just like with crypto five years ago, that gives us an opportunity to hunt for the best opportunities early and position ourselves for incredible gains.

From Illegal to Essential

The industry I’m talking about is legal cannabis. It’s not hard to see why we compare legal cannabis to cryptos. After all, it went from pariah to deemed “essential” in the span of a few years.

With cryptos, the key was understanding that a massive, growing wave of adoption was coming. With more people and businesses using crypto, it was only a matter of time before the price took off.

The same applies for legal cannabis. Starting with Colorado, Washington, and Oregon, legalization has swept across U.S. states. At this point, 35 states have legalized medical usage, and 15 of those states have legalized recreational usage. And around 70% of the population lives in a state that allows one form or the other.

Not to mention, Canada legalized cannabis on the federal level, and Mexico is set to do so this year. This means North America will be the largest market on the planet for legal cannabis and the industry that serves it.

Another catalyst for legal cannabis has been the COVID-19 pandemic.

While many businesses shuttered their doors, legal cannabis was deemed essential in most states where it’s legal. This meant these businesses could stay open – and even add features like home delivery and curbside pickup.

This was a marked turn from the persecution the industry faced up until recently. And it acted like rocket fuel to an already rapidly growing industry.

So at this point, our mission is simple: Find the small companies that are best suited to serve this exploding market… take a position… then hold while they morph into the industry leaders of tomorrow.

To be clear – like crypto – there will be some downswings along the way. It’s inevitable with a new, rapidly growing asset class. The way we manage this is by keeping our positions small and uniform across the portfolio. This limits our downside risk… but lets us take advantage of any outsized gains.

And as we’ve seen with crypto, once momentum kicks in, the train can’t be stopped.

How to Play the Rebound in Legal Cannabis

If you want broad exposure to the legal cannabis trend, you can consider an exchange-traded fund like the Horizon Marijuana Life Sciences Index (HMLSF). It’s up nearly 97% since the beginning of November 2020.

Now, those are great gains and nothing to sneeze at. But if you want to make life-changing gains in the legal cannabis space, you should consider going the pre-IPO route.

As you may already know, an IPO is an initial public offering. It’s when a private company lists on a public exchange like the NYSE or Nasdaq. A pre-IPO is when you buy a private company before it goes public.

Now, 2020 was the biggest IPO boom on record. More IPOs doubled in their debuts than in any year since the tech boom.

And some of the biggest names to go public in 2020 were Airbnb, DoorDash, GoodRx, Palantir, Snowflake, and Warner Music Group.

Since their debuts, these companies have returned an average of 78%. But pre-IPO investors in these companies have seen average gains of 2,796%.

That’s the difference between turning every $1,000 into $1,780… or turning every $1,000 into $28,960.

As you can see, the pre-IPO route offers the opportunity for life-changing gains. And that’s true in the legal cannabis space, too.

For example, Big T and I recommended a private cannabis company in June of 2019.

The company went public last December… and on IPO day returned 50% overnight.

After taking a breather, shares in this company are still up 154% from where our readers got in pre-IPO. And we project it could return as much as 500% upside in the coming months.

That’s the power of getting in the right investment… in the right trend… at the right time.

So if you really want to swing for the fences in the legal cannabis market, consider taking a small stake in a pre-IPO. And if you don’t know how, Big T has put together a free training to show you how to choose the correct IPO.

Invest Wisely!

William Mikula signature

William Mikula
Analyst, Palm Beach Daily

P.S. Teeka has arguably helped more ordinary investors become millionaires than any other newsletter editor in the business. That’s why we call him America’s No. 1 Investor

And right now, Teeka’s revealing what he believes will be the biggest investment idea of the 2020s. Click here to learn why he calls this technology the Investment of the Decade.