In this article, we are going to discuss the 10 best cannabis stocks to buy according to billionaires.

2025 didn’t start off very well for the American cannabis sector. The recent failure of the adult-use ballot initiative in Florida, the lack of prioritization of federal reforms, and pricing pressure by the black market have contributed significantly to cannabis equity values reaching near record lows. MSOS, the first actively managed US-listed ETF with dedicated cannabis exposure focusing exclusively on US companies, has fallen by just over 36% since the beginning of the year, against a decline of 1.72% by the general market.

READ ALSO: 10 Best Alcohol Stocks to Buy According to Billionaires

To make matters worse, the biggest multi-state cannabis operators have as much as $6 billion in debt maturing next year, according to Whitney Economics. Moreover, due to federal illegalization, these companies cannot turn to the US bankruptcy court to keep their creditors at bay while renegotiating their debt. As a result, these businesses will be forced to refinance their debt at higher interest rates and onerous contractual covenants, which will be extremely difficult to manage given the declining profitability of the sector. A recent survey by Whitney Economics revealed that only 27.3% of cannabis operators nationwide are profitable, compared to 42% in 2022.

Also, despite the stringent crackdowns, the cannabis black market continues to be a constant thorn in the side of licensed operators. The market remains flooded with illegal weed, and according to cannabis market tracker BDSA, the US witnessed about $44 billion in illicit sales last year compared to around $31 billion in regulated, legal sales. The black market, combined with an oversaturation of legal operators, has led to a massive decline in prices and, hence reduced margins. The US Cannabis Spot Index, which tracks wholesale prices in 22 states, sits at $991 per pound after reaching a record low in early January of $888. This is significantly down from its peak of $2,133 in September 2015, during the early period of licensed sales in some states.

Given the tough conditions at home, a growing number of cannabis operators are now looking to capitalize on the growing opportunities abroad. As you will notice below, several cannabis stocks in our list managed to increase their sales in the last quarter also due to their expanding international footprint and revenues. With legalization gaining traction worldwide, several industry veterans are now exporting cannabis internationally or straight up establishing growing facilities in their target markets. A great example is how Canada’s volume of cannabis exports to Germany doubled from 16,895 kilograms (roughly 37,247 pounds) in 2023 to 33,155 kilograms last year, according to Germany’s Federal Institute for Drugs and Medical Devices.

As of the writing of this article, 24 states have legalized recreational weed in America, in addition to the District of Columbia. However, possessing or selling marijuana remains a crime under federal law, punishable by prison time and fines.

With that said, here are the Best Marijuana Stocks According to Billionaires.

Our Methodology

To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 10 companies operating in the cannabis sector with the highest number of billionaire investors in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Marijuana Stocks to Invest in According to Billionaires.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10. Advanced Flower Capital Inc. (NASDAQ:AFCG)

Number of Billionaire Holders: 3

Advanced Flower Capital Inc. (NASDAQ:AFCG) is a leading commercial mortgage REIT that provides institutional loans to state law compliant cannabis operators in the US. The company originates, structures, underwrites, and manages loans ranging from $10 million to over $100 million, providing relief to a sector that faces severe financial and banking issues due to federal illegalization.

Advanced Flower Capital Inc. (NASDAQ:AFCG) had a tough Q4 2024 as it reported an EPS of -$0.05, significantly below estimates by $0.41. The company’s revenue of $7.64 million was also down by almost 52.2% YoY and missed expectations by $4.12 million. However, AFCG stated that its active pipeline remains strong, with over $380 million in deals as of March 1, 2025. Moreover, it ended the year 2024 with total assets of $402.1 million, including cash and cash equivalents of $103.6 million. Despite the tough financials, the firm announced a dividend of $0.23 per share for Q1 2025, though it was a 30.3% decrease from the previous dividend of $0.33. AFCG has previously declared that its dividend policy is to pay between 85% and 100% of distributable earnings over the year.

Shares of Advanced Flower Capital Inc. (NASDAQ:AFCG) have plunged by almost 25% since the beginning of the year.

9. GrowGeneration Corp. (NASDAQ:GRWG)

Number of Billionaire Holders: 3

Ranked at number 9 on our list of the Best Marijuana Stocks to Buy is GrowGeneration Corp. (NASDAQ:GRWG), a company that sells hydroponic gardening products that end users may purchase for use in new and emerging industries or segments, including the growing of cannabis.

GrowGeneration Corp. (NASDAQ:GRWG) had a mixed Q4 2024 as its EPS of -$0.19 missed forecasts by $0.07. But the company’s revenue of $50 million managed to beat estimates by $1.28 million, even if it was down by 10.2% YoY. GRWG is working to reduce its annual expenses by approximately $12 million, and in this regard, the company closed 19 of its retail locations last year. Notably, the company ended the year 2024 with zero debt and a strong cash equivalent and marketable securities position of $56.5 million. It also completed a $6 million share repurchase program during the year, demonstrating its commitment to returning value to its shareholders.

In 2024, GrowGeneration Corp. (NASDAQ:GRWG) moved away from a focus on stores in order to transform itself into a product-driven company with a business-to-business customer focus to drive revenue growth. It also launched a new B2B e-commerce portal in Q4 2024 and received positive feedback. Another notable achievement was that the company’s proprietary brand sales constituted over 30% of its cultivation and gardening revenue in the fourth quarter. The target is to increase this number to 35% by the end of 2025.

8. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI)

Number of Billionaire Holders: 4

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) is a commercial real estate finance company that manages a diversified portfolio of real estate credit investments, primarily in the cannabis space, and is actively investing across the value chain.

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) missed forecasts in Q4 2024 as its EPS of $0.39 fell slightly below expectations of $0.42. The company’s revenue of $14.07 million was also down 5.2% YoY and missed estimates. As of March 12, 2025, REFI had $71.5 million available on its secured revolving credit facility and a total liquidity, net of estimated liabilities, of approximately $67 million. The company also declared a regular quarterly cash dividend of $0.47 and also paid a special cash dividend of $0.12 per share in January. REFI is expecting to maintain payment of 90% to 100% of its basic distributable earnings per share in dividends also in the year 2025.

Shares of Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) were held by 6 hedge funds at the end of Q4 2024, with a total stake value of $15.79 million, up by over 122% from the previous quarter. REFI was also included in our list of the 10 Most Undervalued Real Estate Stocks to Buy According to Analysts.

7. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Billionaire Holders: 4

As a Canada-based medical cannabis company, Aurora Cannabis Inc. (NASDAQ:ACB) is focused on the production, distribution, and sale of cannabis and cannabis-derivative products in Canada and internationally and the propagation of vegetables and ornamental plants in North America. Since 2006, the company has developed more than 200 different medical products, transforming itself from a Canadian recreational player into an international medical cannabis powerhouse.

Aurora Cannabis Inc. (NASDAQ:ACB) had a strong Q3 2025, as its EPS of $0.41 overwhelmingly surpassed expectations by $0.42. The company generated a record net income of $31.2 million, up 282% YoY, and a record adjusted EBITDA of $23.1 million, up 316% YoY. Q3 revenue also surged by 28.73% YoY to $61.62 million, topping estimates, driven by all-time highs in global medical net revenue. Aurora’s globalization strategy is paying off, and within global medical cannabis, its international revenue increased by 112%. For the second consecutive quarter, international revenue surpassed Canadian medical cannabis. ACB also generated $27.4 million of free cash flow in the third quarter of 2025. The company maintains a robust balance sheet and ended the quarter with $180.2 million in cash and cash equivalents and no cannabis business debt.

Aurora Cannabis Inc. (NASDAQ:ACB) maintains a world-class research and genetics facility in Canada, setting new standards in cannabis science. The company recently announced the discovery of a novel source of genetic resistance against powdery mildew that provides strong protection against this pathogen in cannabis sativa. The development offers a critical solution to a pressing challenge in the cannabis industry worldwide and is now in use in Aurora’s breeding program.

6. Village Farms International, Inc. (NASDAQ:VFF)

Number of Billionaire Holders: 4

Next on our list of the Best Marijuana Stocks is Village Farms International, Inc. (NASDAQ:VFF), one of North America’s leading growers, marketers, and distributors of top-quality, greenhouse-grown fruits and vegetables. The company’s wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer, and one of Canada’s best-selling brands.

Village Farms International, Inc. (NASDAQ:VFF) reported a mixed performance in Q4 2024. Its revenue of $82.55 million was up 11% YoY and topped expectations by $3.16 million. But the company’s EPS of -$0.08 missed estimates by $0.06. Over the past couple of quarters, VFF has focused its energies on prioritizing profitable sales growth over competing for low-margin business to drive volume and market share in Canada. The strategy seems to be working, as total net sales of the company’s Canadian cannabis for 2024 grew 31% YoY. VFF generated an operating cash flow of $10.5 million for FY 2024 and ended the year with cash of $24.6 million and a working capital of $53.8 million.

Village Farms International, Inc. (NASDAQ:VFF) has also worked tirelessly to expand its international footprint and recently announced the expansion of its medical cannabis distribution to New Zealand. The company aims to at least triple its international medicinal export sales in 2025 and has also commenced cultivation in the Netherlands – its first international recreational market.

5. Canopy Growth Corporation (NASDAQ:CGC)

Number of Billionaire Holders: 5

Canopy Growth Corporation (NASDAQ:CGC), together with its subsidiaries, engages in the production, distribution, and sale of cannabis and cannabinoid-based products for both adult use and medical purposes. The company has also positioned itself to be a top Canadian entrant in the US market with the acquisition of Wana Wellness, The CIMA Group, Mountain High Products, and most recently, Acreage.

Canopy Growth Corporation (NASDAQ:CGC) reported an EPS of -$0.78 in Q3 2025, significantly below estimates of -$0.39. However, the company’s revenue of $52.35 million beat expectations by $4.9 million, despite being down 21.77% YoY. CGC witnessed notable growth across its medical cannabis businesses, and its international markets net revenue also surged by 14% YoY, with strong growth in Poland and Germany. Moreover, Canopy’s Germany-based Storz & Bickel business, known for premium high-margin devices like the Volcano and Venti, delivered an overall net revenue growth of 19%.

Canopy Growth Corporation’s (NASDAQ:CGC) free cash flow for Q3 2025 was an outflow of around $19.52 million, an improvement of 17% compared to the prior year. To help bolster its balance sheet, the company launched a new at-the-market equity program last month, allowing the issuance and sale of up to $200 million in common shares.

4. SNDL Inc. (NASDAQ:SNDL)

Number of Billionaire Holders: 5

SNDL Inc. (NASDAQ:SNDL), the largest private-sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. The company also operates as a licensed cannabis producer and stands as one of Canada’s premier vertically integrated cannabis enterprises.

SNDL Inc. (NASDAQ:SNDL) had a strong Q4 2024 as it reported an EPS of $0.05 against expectations of -$0.01. Net revenue for the quarter came in at a record $257.7 million, up 3.7%, driven by the strong growth in the company’s cannabis business. The biggest highlight is SNDL’s positive $8.9 million free cash flow in 2024, exceeding its breakeven guidance and representing a $70 million improvement compared to 2023. The company ended the year with $218 million in unrestricted cash and zero outstanding debt. Moreover, it also reactivated its share repurchasing program, retiring 10.8 million SNDL shares.

SNDL Inc. (NASDAQ:SNDL) continues to capitalize on new opportunities, including the privatization of Nova and the acquisition of Endiva, which positions the cannabis operator as the largest manufacturer of infused edibles in Canada. The company has also recently signed a strategic supply agreement with Aurora Cannabis, a leading global medical cannabis company. SNDL also recently announced its application for listing on the Canadian Stock Exchange, providing its shareholders additional flexibility and optionality as it continues to grow and evolve.

3. Cronos Group Inc. (NASDAQ:CRON)

Number of Billionaire Holders: 6

Cronos Group Inc. (NASDAQ:CRON) is a Canada-based cannabinoid company engaged in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for both medical and adult-use markets. A noteworthy aspect of the company is its close association with Altria Group, a giant in the tobacco industry that maintains a 41% stake in Cronos that it acquired for $1.8 billion in 2019.

Cronos Group Inc. (NASDAQ:CRON) delivered an EPS of $0.11, beating estimates by $0.12. The company’s revenue of $30.27 million, though up 26.6% YoY, fell below estimates by $4.56 million. What’s more is that most of this growth came from the company’s increasing market share in Canada, reflecting its sustainable nature. Cronos also reported a net profit of $41.08 million for the full year of 2024, its first annual profit since 2021. Another notable achievement is that the company’s Spinach brand ended the year 2024 as the number one cannabis brand in Canada by market share, solidifying its leadership position. Moreover, its PEACE NATURALS brand ended 2024 as the number one flower brand in Israel, with a 24% market share. Cronos also maintains an industry-leading balance sheet with cash and cash equivalents of $859 million, significantly exceeding its market cap and reinforcing its ability to invest in growth, innovation, and global expansion.

Cronos Group Inc. (NASDAQ:CRON) is making continued progress on the expansion of its GrowCo facility, expecting to finish construction of the expanded cultivation and processing facilities in the second quarter of this year, with first harvests and sales from the area commencing in the second half of 2025. The strategic move positions the cannabis company to capitalize on Canadian domestic demand and meet international growth opportunities in 2025.

2. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Billionaire Holders: 7

A pioneer in cannabis research, cultivation, and distribution, Tilray Brands, Inc. (NASDAQ:TLRY)’s unprecedented platform supports over 40 brands in more than 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

Tilray Brands, Inc. (NASDAQ:TLRY) reported a record revenue of $211 million for Q2 of 2025, up 8.9% YoY, but missed market estimates by $5.38 million due in part to a decrease in the company’s Canadian adult-use cannabis sales. The company’s international business also surged by 25% YoY during the second quarter as it launched new commercial products and expanded its reach across Europe. However, Tilray reported an operating loss of $42.2 million in Q2, slightly up from the $41.8 million loss it posted a year ago. Moreover, the company’s adjusted free cash flow was negative $43.6 million compared to $18.4 million in the prior year quarter, largely as a result of an increased demand in its working capital.

To help improve its profitability, Tilray Brands, Inc. (NASDAQ:TLRY) has implemented Project 420, a comprehensive plan focused on enhancing margins and profitability with an aim to achieve $25 million in cost savings, synergies, and cost avoidance initiatives. Moreover, the company’s diversification into the beverages business also seems to be paying off, as Tilray Beverages posted $119 million in net revenue in the first half of FY 2025, a 68.5% increase from the previous year.

1. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 28

Topping our list of the Best Marijuana Stocks According to Billionaires is The Scotts Miracle-Gro Company (NYSE:SMG), the world’s largest marketer of branded consumer products for lawn and garden care. The company has applied its expertise in horticulture to develop innovative technologies and solutions specifically tailored for cannabis cultivation.

The Scotts Miracle-Gro Company (NYSE:SMG) reported better-than-expected results in Q1 2025 as its EPS of -$0.89 topped expectations of -$1.23. The company’s revenue of $416.8 million was also up 1.56% YoY and beat estimates by $24.76 million. SMG revealed that it’s trying to expand its customer base and market share by putting an additional $40 million into its business, from brand support to innovation, the vast majority of it going to advertising. SMG has been working on a multi-year plan to reduce costs and optimize its business, which has yielded $400 million in annual savings. Moreover, the company has been focused on bolstering its balance sheet, and in Q1 2025, its total debt was lower by $337 million compared to the previous year. Scotts Miracle-Gro also announced a quarterly dividend of $0.66 per share in January.

The Scotts Miracle-Gro Company (NYSE:SMG) recently announced plans to spin off its marijuana unit, Hawthorne Gardening, into a stand-alone operation. The company expects that the strategic move would bring tax benefits and credit capacity, in addition to eliminating the volatility of the cannabis sector and generating a significant uplift in gross margin.

Overall, The Scotts Miracle-Gro Company (NYSE:SMG) ranks first on our list of the best cannabis stocks to buy according to billionaires. While we acknowledge the potential for SMG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.