Leon Cooperman, “The Cannabis King” has been pictured and pined in the New York Post with probably the least expected title for the 75-year-old legendary Wall Street trader but it is all kosher.
So just how did Leon Cooperman, “The Cannabis King”, the grandad of Wall Street traders end up with such a headline and his picture next to it.
The billionaire hedge fund manager with a personal net worth of US $3 billion recently (October, 16) confirmed on a business network how he invested his personal money in pot stocks.
“Leon Cooperman has invested $1.1 billion in CannTrust and $2.6 billion Green Thumb Industries”
Leon Cooperman, “The Cannabis King” has his pot investments concentrated in a few young marijuana companies.
Leon Cooperman has invested $1.1 billion in CannTrust and $2.6 billion Green Thumb Industries, Cooperman said that he was first introduced to marijuana sector through Ben Kovler, heir to the Jim Beam bourbon empire.
“I meet with Ben and I’m impressed with him; he’s a smart young man. I put some personal money in,” Cooperman said.
“They have a conference call [and] like a schnook I ask a question. The next thing I know, my picture’s in the New York Post as “The Cannabis King.”
Leon Cooperman, “The Cannabis King” reckons that the marijuana sector is in its infancy.
“It’s clearly a growth business, and I’ve never had so much fun with my pants on as I’ve had with these stocks,” joked Leon Cooperman.
“It’s clearly a growth business, and I’ve never had so much fun with my pants on as I’ve had with these stocks”
But Leon Cooperman, “The Cannabis King” could be having more than just fun investing in pot stocks he could be giving his return on capital a true hard-up. Leon Cooperman’s billion-dollar investments in the marijuana sector could be a shrewd play.
In a recent piece entitled “Pot Stocks” I noted that the pot stock rally could be more than just a fad.
A new study from OutCo and Monocle Research shows 51% of millennials in California will replace alcohol for marijuana. Moreover, the research suggests that this shift is likely to accelerate going forward.
“We are already seeing a decrease in alcohol sales, which means that cannabis is poised to be the new recreational substance of choice for many millennials and beyond” – Lincoln Fish, OutCo CEO
Leon Cooperman, “The Cannabis King” could be ahead of the trend with pot stocks already outperforming booze stocks
“We are already seeing a decrease in alcohol sales, which means that cannabis is poised to be the new recreational substance of choice for many millennials and beyond”, said OutCo CEO, Lincoln Fish.
The slow legalization of cannabis today is similar to the removal of the prohibition of alcohol in the US which lasted for 13 years, 1920-1933 (also a period of political, financial and economic turmoil which eventually led to WWII). Today, we are in similar turmoil with the newly legalized panacea being marijuana.
Leon Cooperman, “The Cannabis King” views the cannabis stocks as growth stocks
If alcohol companies back in the early 30s are similar to what marijuana companies are today then the 75-year-old billionaire investors could be bang on the money with his investments in pot stocks.
But Leon Cooperman, “The Cannabis King” marijuana investments are targeted towards cannabis as a recreational drug rather than marijuana for medical purposes. Leon Cooperman told the business network that he does not own shares of medical marijuana producer
So what other stocks have Leon Cooperman, “The Cannabis King” bought?
In addition to can trust and Green Thumb, Leon Cooperman said he has a stake in iAnthus, which owns and operates licensed cannabis cultivation, processing and dispensary facilities in the US.
Ianthus is a leading publicly traded US cannabis operator.
The company is active in the entire business process from cultivation, processing to retail and marketing. Moreover, the management team has expertise in regulated industries, lobbying, project management, real estate, and corporate finance. By implementing expandable, replicable initiatives across multiple operations, the company is well positioned for growth.
So overall Leon Cooperman, “The Cannabis King” could be ahead of the investing herd, which is a trait of world top investors.
“We are inclined to believe that the cannabis sector could see a flurry of takeover and mergers activity as the sector matures going forward”
The legalization of cannabis is one of the fastest growing industries in the US today
Cannabis sales are projected to quadruple over the next five years, making cannabis one of the fastest growing sectors for investment
Indeed, pot investing was given the thumbs up, in a piece entitled “Pot Stocks”.
We are inclined to believe that the cannabis sector could see a flurry of takeover and mergers activity as the sector matures going forward. Moreover, there is nothing like M&A activity to make pot stocks investor’s fly high (pardon the pun).
The tuned in the management of the major booze companies get it too-that the legalization of pot and its preference amongst the up and coming consumer group, the millennials are going to be a major disruption to the industry. Their major consumer market the baby boomers are quietly heading off into the sunset and for the new up and coming generation, the millennials their recreational drug of choice is cannabis as opposed to alcohol.
So the likes of Ben Kovler, heir to the Jim Beam bourbon empire, are getting in early and buying a chunk of tomorrow’s pot blue chips.
Is Leon Cooperman, “The Cannabis King” worried about a 180-degree turn on lax cannabis legislation?
The auto insurance companies could panic about their accident claims going up, then lobby the government to reverse the cannabis lawyers.
That would be the big bearish view on the cannabis sector.
However, if we are entering another WTF moment similar to the period after alcohol prohibition perhaps the government might see cannabis as a useful drug to keep the populace calm. Keep calm, keep high and “don’t worry about a thing”.