The “right” thing to say would be that by investing in psychedelics, we’re investing in the next evolution of mental health medicines and therapies. An honorable endeavor, to be sure.

After all, with a very real global mental health crisis getting worse and worse every year - and now further exacerbated by COVID-19 - to be a part of an industry that could potentially save millions of lives by successfully treating everything from anxiety and depression to PTSD and addiction is absolutely an exercise in what many refer to as “ethical investing.” That is, doing well by doing good.

But when it comes to psychedelics, it would be dishonest to suggest that this is just about altruism. The truth is, while providing the best-in-breed psychedelics companies with the early-stage capital necessary to bring their medicines and treatments to market, the potential returns on these investments are really what’s bringing most investors and business leaders to the table.

Folks such as:

• PayPal co-founder Peter Thiel (net worth: $6.2 billion)
• Entrepreneur and podcaster Tim Ferris (net worth: $100 million)
• GoDaddy founder Bob Parsons (net worth: $2.2 billion)
• Entrepreneur Blake Mycoskie (net worth: $300 million)
• Entrepreneur Kevin O’Leary (net worth: $400 million)

Make no mistake: These guys didn’t get where they are today by making bad investment decisions.

That’s not to say there isn’t some truth to the fact that these folks also understand the potential health and societal benefits of psychedelic medicines and treatments. Any investor who’s done an ounce of research into this space fully understands just how real these benefits are.

However, the reality is that even the most socially - conscious investors do seek more than just feeling virtuous and noble. That’s why it’s called socially - conscious investing - not socially-conscious charity.

No matter how you slice it, no one is going to make an investment without the promise of a return. And when it comes to the potential returns on the right psychedelics investments, there are few other early-stage markets that will deliver the kinds of returns we’re going to see in this space. In fact, we’re already starting to see them.

Despite a recent downturn in the broader markets, as well as a sell-off in the psychedelics space - those who got in early on the big names are still money-good.

Take MindMed (OTC:MMEDF),  for instance.

MindMed opened at around $0.37 a share went it went public via its U.S. listing.  Today, the stock trades in excess of $2.00 per share.

Or Field Trip Health (OTC:FTRPF), which opened at around $2.20 per share on its debut via its U.S. listing.  Today, that stock trades in excess of $4.00.

And Compass Pathways (NASDAQ:CMPS), which opened at around $23.40 on its debut.  Today, Compass trades in excess of $34 per share.

Of course, these numbers don’t mean much right now.  After all, these companies haven’t even scratched the surface in terms of what they’re going to accomplish over the next three to five years.  In other words, the big money has not yet been made on these stocks.

And there are some smaller, younger players that have recently come into the picture, too.  Companies such as BetterLife Pharma (OTC:BETRF), Entheon (OTC:ENTBF), Bionomics (OTC:BNOEF), and IntelGenx (OTC:IGXT), which are either pure-play psychedelics stocks or simply companies that have excellent exposure to the space.  These should definitely be on your radar, as they could easily double over the next year or two.

Make no mistake: Many of these psychedelics companies that investors are only starting to learn about now, are going to usher in a new generation of medicines and therapies that will effectively treat everything from mental illness to traumatic brain injuries to neurodegenerative diseases.

They’re going to help a lot of sick people.

But they’re also going to help a lot of early investors make a lot of money.

And it is for those two reasons that I personally invest in (and profit from) psychedelics stocks.

Jeff Siegel is a managing partner of the JLS Fund (an early-stage plant medicine venture fund) and is also the co-founder of Green Chip Stocks, a private investment community focused on socially-responsible investing. He has been a featured guest on Fox, CNBC and Bloomberg Asia, and is a regular on the speaking circuit.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.