On April 20, also known as 4/20, or “Weed Day,” three years ago, recreational marijuana was illegal in all but just two states: Colorado and Washington. If an investor had taken a risky bet then on the nascent—and then largely taboo—industry’s growth and invested indiscriminately in a wide range of marijuana stocks, they would have, well, smoked the stock market.
Investors are more likely to buy marijuana stocks around the unofficial 4/20 holiday, according to data from investing app Robinhood. And those investors who bought 10 U.S. cannabis stocks back in 2014 would have reaped a 32% return on their portfolio—beating the S&P 500’s 25% jump, Trump Bump rally and all, in the same period. Had investors just picked the top-performing weed stock over that period, though, they could have made a return of more than 4200%.
Marijuana Stock Performance Since 2014
Company 3 Year Return