Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management, believes that marijuana is a “huge opportunity.”
Speaking to Yahoo Finance Live, Gerber said that the plant is a huge opportunity for long-term investors.
“For investors who are looking at the long game, this is a huge opportunity because the players in cannabis have only gotten stronger over the last year,” Gerber said.
“The numbers that I’ve looked at for the quarter, the most recent quarter, have been amazing,” he added. “And they’re very well-run companies that are now trading at multiples that look very reasonable for their short- and long-term growth rates.”
Gerber noted, Gerber Kawasaki is up “substantially” on cannabis over the last year. This is despite giving back half those gains in the last year.
“I’m very close to pulling the trigger and adding to these positions right now, aggressively,” he remarked.
Gerber does not believe that growth in the U.S. is slow.
“There is no slowdown in cannabis,” Gerber exclaimed. “And, in fact, I would argue the opposite. The new products that are coming out from like drinks and some of the new edibles, but really in the drink side of the cannabis business is — this stuff is booming. We’re seeing cannabis lounges now being approved all over. One in Vegas, for example.”
In all, Gerber estimates that the U.S. cannabis market is between $70 billion and $100 billion, “and we just scratched the surface.”