Warren Buffett is one of the smartest investors in American history. I have always thought that if Warren Buffett was sniffing out the cannabis industry, that would be one of the biggest indicators that the cannabis industry has arrived. It appears that scenario is occurring right now, which is a very exciting thing for the industry as a whole.
Cubic Designs Inc., a unit of Berkshire's MiTek business that makes platforms for maximizing usable floor space in warehouses, sent about 1,000 fliers to weed dispensaries in recent weeks, offering to help growers expand the number of plants they cultivate.
"Double your growing space," the flier reads in capital letters, above an image of an indoor facility with rows of plants. Another page says, "Grow your profits."
Cubic Designs spotted the opportunity after a few pot growers approached the firm about its platforms, or mezzanine systems, according to Shannon Salchert, the company's marketing coordinator. Warehouse space has gotten tight in places like Denver, where growers are looking for facilities to cultivate their product. That demand has allowed landlords to raise prices.
"We sold a few mezzanines into that market and decided internally, 'Why don't we do some marketing?'" Salchert said today in a phone interview.
More and more experienced investors have been entering the cannabis industry every month that has gone by since Colorado and Washington legalized recreational cannabis in 2012. But the heaviest hitter so far has to be Warren Buffett. Yes, this is just a subsidiary of Berkshire, but I don't think it's a stretch that to assume that Mr. Buffett had to give final approval to such a high profile marketing strategy. This is a great example of how large the cannabis industry is becoming. These are truly exciting times.