Warren Buffett, currently the fourth richest person in the world, recognizes the amazing potential in legalized marijuana, or at least one of the companies that he owns does.
Bloomberg has reported that one of the holdings owned by Warren Buffett is courting a business in the marijuana industry. With the recent need for space to grow marijuana in the state of Colorado, this could be another excellent example of the chairman and CEO of Berkshire Hathaway doing well by letting one of his companies fulfill a need in the market.
Roughly 1000 fliers were sent out in recent weeks from Cubic Designs Inc. to businesses related to marijuana in Colorado, California and Washington advertising “Double Your Growing Space” and it features a picture of their mezzanine systems.
Buffett added this company that has been in existence for 18 years and based out of New Berlin, Wisconsin, to the balance sheet of Berkshire Hathaway just last year. Cubic Designs serves its overall market with engineering, installation solutions, fabrication and design, according to a company press release put out after MiTek Industries purchased the business last October.
“Through Cubic, MiTek is able to expand into new and markets with highly customized, tightly engineered, prefabricated structural steel products,” said the CEO and chairman of MiTek, Tom Manenti.
The mezzanine system that they offer will maximize warehouse space by providing multiple levels to grow plants. In the flier, they have placed a green cross, which is now the symbol that represents medical marijuana.
Marketing Coordinator at Cubic Designs, Shannon Shalchert, chose not to comment on this story, but she did speak with Bloomberg on Friday.
“We sold a few mezzanines into that market and decided internally, ‘Why don’t we do some marketing?’” said Shalchert.
Over the years and decades, Buffett has gained a strong reputation as becoming a hands-off investor. He leaves them alone if they are performing well.
Cubic Designs has even thought about working with real estate agents. This could be a high-scoring strategy in the expanding market for finding and then maximizing grow space for marijuana plants. It would provide another big win to Warren Buffett as well as bolster the viability of the industry of legal marijuana for thousands of investors.