Investors in marijuana stocks are younger and more likely to be from big states such as California and New York, but they tend to have less money to put into publicly traded companies, according to a report by stock tracker SigFig.
Marijuana stock investors have, on average, less than $100,000 in liquid assets to invest and are generally under the age of 40. By comparison, the average investor buying shares of tobacco companies is nearing 60 and has about $600,000 in money to invest, according to SigFig and CNBC.
SigFig used data from 230,000 investors and returns through April 13 to compile the report, a comprehensive look at investments into so-called sin stocks — tobacco, alcohol, gambling and marijuana.
Those in more liberal states are likely to buy stocks of publicly traded marijuana companies, particularly Medical Marijuana Inc., Growlife, Hemp Inc. and GW Pharmaceuticals. Older, wealthier and more conservative investors, usually from the south, are more apt to put money into tobacco stocks.
Alcohol and tobacco stocks have outperformed while casino and marijuana stocks have underperformed, CBS News reported. Even including alcohol and tobacco, however, so-called vice stocks were outperformed by the overall Standard & Poor’s 500 index.
Marijuana stocks spiked last year, jumping more than 900% in the first quarter, but then falling back in each of the following three. Investment analysts have said the outlook for MJ stocks is strong, but many businesses will fail thanks to a “toxic” management structure.