As of: February 28, 2024, 9:02 p.m
By: Natascha Berger
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Cannabis will be legal for adults in Germany from April 1st.
Even before the Bundestag's decision, some cannabis stocks were rising.
Is it worth investing now?
Berlin - After decades of controversial discussions, the Bundestag decided last Friday: From April 1st, adults will be allowed to possess, consume and grow cannabis under certain conditions.
Up to 50 grams of marijuana per month is considered legal possession, and 25 grams can be carried in public.
Anyone who would like to grow up to three of the plants at home can do so from April.
In growing associations, grass can also be passed on among members of the association for their own consumption.
Shares of German cannabis companies are currently rising
Even before the traffic light government voted for legalization, the prices of several cannabis stocks doubled.
An example of this is the Munich company SynBiotic: the share price rose by around 219 percent within a month.
The listed company primarily wants to make cannabis usable for medicine.
Likewise Cannovum and the Berlin company Cantourage - here too the securities became more expensive and increased significantly in value.
Despite cannabis legalization: This is why investors should be careful when buying shares in individual companies
So is it worth investing in these companies now?
Experts view this critically.
Although the stocks of cannabis companies recorded an increase, it must also be noted that the market is still very young, especially in Germany.
It remains to be seen which of the companies can survive in the long term and where profits can really be expected from shares.
The cannabis industry is also subject to political risks: in the past it has been shown that when legalization or a change in the law was announced, stocks shot up only to collapse again later.
After the announced legalization of cannabis in Germany, some stocks rose.
But experts warn investors.
© Arne Dedert/dpa & Christian Charisius/dpa
Despite rising stocks, the cannabis market is still a niche market in comparison
Overall, experts such as Hartmut Walz from Ludwigshafen University assess the importance of the German market on the global value chain as marginal.
From an investor's perspective, no miracles are to be expected.
The three largest international listed cannabis companies Jazz Pharmaceuticals, Tilray and Canopy have a combined market value of less than 15 billion euros.
The pharmaceutical company Abbvie, which is also involved in the cannabis sector, is worth around twenty times as much, as
Handelsblatt
reports.
In Canada, where the green plant has been legal for more than five years, the market is still tiny in comparison.
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Despite legalization, experts advise against betting on individual company stocks on the German market.
If you still want to invest in the industry, you should invest in several stocks or cannabis ETFs.
This way the risk can be reduced.
In general, different investment options have different risks and potential.