The Profit Power of What You Know

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How do you find a great investment?

Back in 2003, I was walking in New York and people were wearing True Religion jeans everywhere I went. Then I discovered they were paying $200 for them. I bought a pair for myself, and they really were nice. So after my full analysis, I went ahead and bought the stock, too, just as the brand was taking off among the 18- to 34-year-old demographic.

True Religion (TRLG) was less than a dollar at that time – but when I cashed out, it had run up above $20.

Great investing ideas are like that. They’re often very simple and right in front of us. They pop up in our daily lives… and we hear about them from friends and neighbors. Just like when everyone stopped renting movies and started getting little red envelopes in their mailbox.

If you started using Netflix (NFLX) in the mid-2000s – instead of paying all those late fees to Blockbuster – then congratulations. You uncovered a great business model! Even if you didn’t invest in Netflix (or not until much later), you spotted a game-changing company in its very early days.

[NFLX]

That’s what it’s all about. Netflix’s success is not complicated, just like Facebook (FB) or Amazon (AMZN). People have firsthand experience with their products and services, and use them all the time. It’s the power of what you know.

It’s Happening Again

Just a few months ago, I was in New York again, at one of my favorite little coffee shops. This time everyone had a drink infused with cannabidiol (CBD).

A few days later, my girlfriend brought home a CBD lotion. She explained how it was derived from hemp and was an anti-inflammatory, plus it has antioxidant properties, to fight signs of aging and wrinkles. Basically it’s the non-psychoactive “cousin” of marijuana – but since it doesn’t have tetrahydrocannabinol (THC), it doesn’t get you high.

Regular MoneyWire readers won’t be surprised that I tried CBD and found that it really helps me mellow out to go to sleep. I swear by it. People like Michael J. Fox and Melissa McCarthy use it, too, but it’s not just celebrities. If your experience is anything like mine, your friends and loved ones are starting to talk about trying CBD as well. People are even using it for their pets!

Whether you have tried CBD or not, millions of people have. I think you’re going to like the numbers on this one. Here’s the latest on the CBD craze:

  • CBD was a $108 million market in 2014, and by 2022, it’ll ring in at $22 billion, according to projections from the Brightfield Group. That’s 20,270% growth in just eight years.
  • Besides the little neighborhood CBD shops that are popping up everywhere, you can also now buy it at CVS and Walgreens. Clearly, CBD products are starting to enter the mainstream.
  • Sephora and Ulta Beauty (ULTA) now carry their own CBD products. So does GNC (GNC), and Urban Outfitters (URBN) and Kroger (KR) will sell CBD, too.
  • People with seizure disorders have had great success using CBD to reduce their symptoms. That was how my favorite CBD stock got its start.
  • A lot of folks are using it to help manage pain, anxiety, depression, and sleep disorders, too. In fact, in one survey from the National Institutes of Health (NIH), about 36% of CBD users found that it was managing their condition “very well by itself.”
  • The implications for CBD fighting the opioid crisis are huge. In a study published in the American Journal of Psychiatry in May, doctors administered CBD to people in recovery from heroin addiction. They found that CBD “significantly reduced both craving and anxiety,” with “no significant effects on cognition, and there were no serious adverse effects.”

The companies providing all this CBD are raking it in – doubling their revenues over the past 12 months. But seeing as hemp-derived CBD just became legal six months ago, there’s a lot more to come, especially given the sharp growth trajectory we saw earlier.

All from just those little bottles of hemp oil at the drugstore and beauty shop!

It reminds me of a famous story I heard on Wall Street. Peter Lynch, a legendary investor, once ran one of the top-performing mutual funds of all time: Fidelity’s Magellan fund. Among his biggest winners was Dunkin’ Donuts (DNKN). Apparently he bought it because he liked the coffee – and it ended up being a 10-bagger.

Then there’s Bill Gates. He once tried fake chicken at a taco truck – it was made out of pea protein, but he couldn’t tell the difference from the real thing. His investment in Beyond Meats (BYND) has paid off handsomely after the company just had one of the best IPOs of the year.

That’s the “power of what you know.”

And now I think CBD could be your “power of what you know” moment.

CBD Early Investor’s Kit

Now is the time to invest while the stocks are still small. And small companies are the job creators. The innovators. Invest in a high-quality business model in its early days – and once it takes off… that’s how fortunes are made.

I believe in this opportunity, so this week I’ll be sharing a series of articles to help you truly “know” about it.

I’ve also been working with my publisher to put together a complete CBD Early Investor’s Kit. We’ve got enough for the first 4,000 respondents, and here’s what you get:

  • The #1 CBD Stock in the World. One little company has been eating up much of the U.S. market share in CBD, because it can produce a higher-quality product – and lots of it. I’ve got a whole investment guide to fill you in before the crowd catches on.
  • Three More CBD Stocks to Fatten Your Wallet. These other CBD stocks are quietly doubling revenues, tempting away top executives from household brands, and striking sweet deals on new product lines. You’ll see their names, ticker symbols, and buy-under prices in my full report.
  • Plus, to help you really get to know the product, you’ll also get a 15-day supply of high-grade CBD from CannaComplete. If you’re like me, you like to see what all the fuss is about firsthand. That’s why, on my recent trip, I went to the “Starbucks of China.” I wasn’t impressed with that but I do understand the CBD craze, now that I’ve taken part. There’s a lot of weird rumors about CBD, from haters and Now you can see the real deal for yourself.

Click here for more details and to claim your research package now.

P.S. Those of us who have tried CBD know that its appeal is simple and straightforward. Just like with Netflix and Facebook – or with True Religion, back in the day – that’s what makes it powerful.

As investors, there are plenty of avenues we can take to cash in on the CBD craze. So, this week I’ll be getting you prepared for that.

We’ll take a closer look at CBD’s benefits, market outlook, and what’s allowing its availability to explode across the country. Stay tuned to MoneyWire this week. And if you want more information now, please click here.

Learn where Matt McCall sees
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