That is not to say that all marijuana-related companies are suspect. If you are planning on picking individual cannabis stocks, Brochstein recommended focusing on revenue and avoid companies with “professional penny stock executives.” “All these companies are overvalued. If you try to be Warren Buffett, you won’t buy any of these stocks,” Brochstein said. Many of the marijuana-related companies that investors can buy stock in aren’t “plant-touching.” That means these companies supply goods and services to marijuana growers and distributors, or derive some commercial benefit from cannabis rather than dealing with the actual weed. Good examples of these types of companies are lawn-care products maker Scotts Miracle-Gro , which have been acquiring hydroponics businesses, British biotech company GW Pharmaceuticals , which has a pipeline of cannabis-based drugs, and colorado medical marijuana news real estate investment trust Innovative Industrial Properties , which buys buildings and leases them to growers of medical marijuana. Cannabis funds Meanwhile, investors may soon have access to a U.S. marijuana exchange-traded fund (ETF). The ETF Managers Trust, which has helped launch instruments that invest in whiskey, big data and cybersecurity stocks, filed paperwork with the SEC to create the Emerging AgroSphere ETF. The proposed ETF tracks an index that invests in a group of 69 companies that are involved in the medical marijuana and industrial hemp industries.