Why I'm Leaving Wall Street to Enter Cannabis

Here’s a secret I’m now sharing with my 5k+ closest buds, I just left my traditional financial firm to (GASP!) take a role as a partner at a private equity firm in Cannabis.

For many the next question is inevitably, a big huge why? 

Well, it all started with three words, generational wealth creation.

I believe in cannabis we are amongst an industry trend that will have ramifications for decades and be one of the largest wealth drivers we’ve seen. When you find yourself in one of these periods, passionate about the change that is coming, and able to affect the outcome, it’s time to leap. After all, it’s only so often a generational wealth creation event comes across your path. In fact, it’s usually about once in a generation, so you better hop to it. 

... we are amongst an industry trend that will have ramifications for decades and be one of the largest wealth drivers we’ve seen.

Now while I’ve worked at some of the largest firms in investing and soaked up as much wisdom as I could there, I won’t profess to be some sort of clairvoyant. Far from it. But I’ve always been a ravenous student of history. As a former journalist that’s what we are taught, look for what’s hidden, find the truth, and don’t let stigma or societal expectations get in your way.

So, when I was first offered a chance to invest in cannabis in 2014, I jumped. Down the rabbit hole I went, with each stone overturned, I began to build a picture of the opportunity in this industry so many still look down upon. The truth is that not everyone will win (public stocks in the space are too expensive IMHO), but there will be many winners. Many big winners. And the winners will not all be monetary, but the wins will be counted in lives, dollars, impact and beyond. 

And the winners will not all be monetary, but the wins will be counted in lives, dollars, impact and beyond. 

I believe my new company Cresco Capital Partners, will be among those winners, doing well by doing good. In fact, I was talking to a friend of mine who works at one of the largest venture-capital firms in the world, Sequoia, about how they started and became a global leader. I asked him when the internet and tech was springing up how did those first movers and investors come to be where they are today as shaping much of our world through the companies they choose to give lifeblood/capital to.

He said there were four things that defined them; they were curious, competent, collaborative, and most importantly they were present. They dove in.

When I told him about this new opportunity, I thought he’d quickly label me nuts (or let’s be honest – as a user of the product). He, like many of my mentors, worked at firms like Carlisle, Goldman Sachs, KKR and Andreessen Horowitz, who are far from the cannabis epicenter.

Yet instead of concern and condemnation of my path less traveled, a crazy thing happened. He asked to invest.

As I spoke with the smartest investors I knew the same phenomenon occurred again and again. While many people, including I’m sure my parents, worried about me labeling myself as a “woman of weed,” more contrary and savvy individuals instead wanted exposure and visibility. They voted with their dollars. 

Only then did I feel the courage to listen to what my gut had been telling me. For all you fellow quant nerds here is the quantitative data that swayed me from a dollars standpoint:

1. Generational wealth creation event: This is an $18B current global market legally. In the US it is a $50B+ market when we combine the grey market – in fact, many (including yours truly) believe these figures are severely understated. We believe cannabis and hemp businesses will generate in excess of $1 trillion in market capitalization over the next decade. 
2. Price Arbitrage: On the private side we can invest at a sizable valuation discount, while on the public side cannabis companies are trading at 50-200x earnings and the S&P is at all time highs. This is a dramatic price dislocation in a high growth market. (All this means – buying cheaper – selling higher is possible).
3. Strong Momentum: 34 states have some segment legalized, 50 countries and we've seen $3B in US tax revenue. In investing we say, “Don’t fight the trend.” That applies double here. 

BUT let me tell you something. There are MANY ways to make money and I believe you can (and should) succeed and do some damn good. What intrigued me before the money even was considered was the impact. The possibility to have purposeful profits. 

From Opioid/Morphine addiction dropping with cannabis usage, to veteran suicide reducing (a case near and dear to my heart), to epilepsy in children being held at bay, to fighting and even reversing cancer, to treating anxiety, depression to even mature Fido jumping again post CBD usage, this plant has some serious health chops. Don’t believe me:

• Mother of child with epilepsy has her cannabis confiscated and then returned when her child is hospitalized and her seizures return.
•  I don't feel high, I feel better: 98 year old tries cannabis cuts back on morphine.
• US Legislation will see cannabis studied as a treatment for PTSD in veterans.
• Recent study finds cannabis effective in MS treatment.
• Another study suggests that cannabis smokers are happier.
• High CBD cannabis effective in treating children with autism.
• Hemps positive effects on the environment.

There are literally too many stories to track so if you are interested here’s 50 Reasons Cannabis Helps.

But as with anything in life the real change happened when I got close and personal with humans. I started dating a military man and I saw the impact cannabis could have to change the lives of our veterans. I met a veteran who had lived through war atrocities and after his government prescribed opioid cocktail almost killed him, he tried an alternative, cannabis. That alternative saved his life and kept a bronze medal hero and his family intact. 

I met a veteran who had lived through war atrocities and after his government prescribed opioid cocktail almost killed him, he tried an alternative, cannabis. That alternative saved his life and kept a bronze medal hero and his family intact. 

I share this story not to open up my diary, but because I think there are many of you wondering the same thing I was:

• Wondering if cannabis should be considered more dangerous than opioids as a schedule 1 drug?
• Wondering if we should fill our prisons with cannabis users?
• Wondering if your family members with cancer, chronic pain or depression could find relief?
• Wondering if it might just be a wellness or a recreational plant that you want to implement in your life?
• Wondering if you should invest?
• Wondering if in the future we will look back on cannabis prohibition like we did alcohol prohibition and think; “Huh, weren’t those people ignorant back then?” 

You know my answer. Let these words echo… 

Generational wealth creation.

Massive societal change. 

Purposeful profitable pursuits.

Maybe you’ll realize like I did, that this will be one of most important industries of our lifetime. Then you have to decide, what are you going to do about it? As they say actions always speak louder than words.

Hope to see you on the other side…. turns out the grass actually is greener. 

If you want to learn more --> Here's my interview on the top cannabis podcast Cannainsider.

Codie