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Originally Posted by highnote
I like this thesis.
Cobalt is needed to make Lithium batteries. Electric cars take about 100 pounds of copper. So there is probably an opportunity in copper, too.
I would like to invest in something related to marijuana.
I read an interesting article today that Ray Kroc of McDonald's said they were mainly in the real estate business. 15 cent hamburgers brought in the most money for the franchise owners. The franchisees paid McDonald's rent on the buildings and real estate was where the big money was being made.
So I'm thinking that investing in real estate firms that rent to pot growers could be profitable.
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AFCO, FPI, and LAND are all farmland REITS that I have been following. None of them lease to any marijuana operations but they are all triple net (The farmers are responsible for all taxes and maintainence on the land). AFCO and LAND lease land for permanent crops which have a little less commodity volatility than the wheat/soy segment that FPI specializes in.
The theory of owning the land and leasing it to a farmer works regardless of the crop so I wouldn't focus too much on marijuana as the target. The marijuana customer also eats.
I haven't bought any of these though I came close on LAND when they had a secondary offering and the price dropped for a few days. Waited too long and it has drifted back up.
You won't make a killing on these. They aren't FANG. But you won't lose your shirt either. They are bond analogs with some interesting attributes that I like. But higher interest rates will probably cause most REITS to drop in price the same way utilities would get hit in that scenario.