There’s arguably no buzzier investment on Wall Street at the moment than marijuana. And within the cannabis industry, no trend is hotter than the rise of cannabidiol (CBD).
Cannabidiol is the nonpsychoactive cannabinoid best known for its perceived medical benefits. It can be extracted from the cannabis plant or from hemp, the latter of which is almost always a more cost-effective source to obtain large quantities of CBD extracts. Given that CBD-infused derivatives, such as oils, capsules, edibles, infused beverages, and topicals, don’t get a user high, they’re believed to be the perfect means to market to users who’ve never used, or considered using, a marijuana or hemp-oil product before.
For Wall Street, CBD is nothing more than a gigantic dollar sign hovering over the industry. The Brightfield Group foresees U.S. CBD-based sales rocketing from $591 million in 2018 to $22 billion by 2022. That’s