When I first dipped my toes into marijuana stocks, I’ll admit, I wasn’t a seasoned investor. I was someone curious about emerging markets and willing to take calculated risks. Cannabis was still a controversial topic, but I saw a once taboo industry beginning to mature gaining legal traction, political backing, and consumer demand. So, I took $ 1,000 money I could afford to lose and began what would turn into a surprisingly profitable journey.
Here’s how I turned that $ 1,000 into $ 3,500, and what I learned along the way.
The Spark: Why Cannabis?
Back in late 2019, the marijuana industry was in an awkward phase. Several U.S. states had already legalized medical or recreational cannabis, Canada had fully legalized it, and public support was growing. Yet, federal illegality in the U.S. was still holding major financial institutions and big investors back.
That made marijuana stocks incredibly volatile and ripe with opportunity.
I wasn’t looking for a sure bet. I was looking for asymmetric risk: scenarios where the potential upside far outweighed the downside. Cannabis fit the bill perfectly.
The Research Phase
Before investing a dollar, I committed to doing my homework. I subscribed to cannabis investment newsletters, followed Reddit’s r/weedstocks community, and read quarterly reports from companies operating in the space.
Here were a few key criteria I used to pick stocks:
- U.S. exposure – Canadian companies were getting a lot of attention post-legalization, but U.S. multi-state operators (MSOs) had more room to grow with state-by-state rollouts.
- Cash flow and debt – Many companies were burning cash, but I looked for those on the verge of turning profitable or with manageable debt.
- Political tailwinds – I tracked legalization movements and potential federal reform. Any pro-cannabis shift could move the whole sector.
The First Buys
I split my $ 1,000 between three companies:
- Trulieve Cannabis (TCNNF) – A Florida-based MSO with a strong retail footprint.
- Cresco Labs (CRLBF) – Aggressively expanding across multiple states.
- Village Farms International (VFF) – A Canadian producer transitioning from tomatoes to cannabis with strong agriculture experience.
I picked these companies not because they were the most hyped, but because they were growing revenue, had a clear expansion strategy, and weren’t heavily diluted.
The Pandemic Pivot
In early 2020, the pandemic struck, and markets crashed. My portfolio dropped nearly 30% in just weeks. But instead of panicking, I saw an opportunity.
Cannabis was declared an “essential service” in many states. That gave me a big hint: this industry wasn’t going anywhere. I doubled down, adding another $ 300 during the March lows to scoop up shares at discounted prices. I bought more Trulieve and a bit of Green Thumb Industries (GTBIF), another well-managed U.S. MSO.
This was the turning point. Over the next 12–18 months, my picks began to soar.
The Run-Up
By early 2021, the cannabis sector was hot. Joe Biden’s presidential win and the Senate flipping blue sparked optimism for federal decriminalization or banking reform. MSOs began posting record revenues, opening dispensaries, and showing early profitability.
Trulieve and Green Thumb doubled. Village Farms rode the Canadian wave, and Cresco posted strong numbers. My portfolio surged past $ 2,500.
But I didn’t sell.
The Trim and Rebalance
By mid-2021, valuations were stretched, and euphoria was high. I knew enough about market psychology to recognize that hype doesn’t last forever. I trimmed my positions, selling 30% of my holdings and locking in some gains. That freed up capital and gave me peace of mind.
With that cash, I rotated into ancillary plays like GrowGeneration (GRWG)—a hydroponics supplier not directly tied to the legality of cannabis and Innovative Industrial Properties (IIPR), a real estate investment trust focused on leasing properties to cannabis operators.
These were safer bets with consistent cash flows and less regulatory risk.
The Pullback and the Patience
Like clockwork, the cannabis sector cooled off in late 2021 and into 2022. Stocks gave back some of their gains. My portfolio dipped back to around $ 2,800, but I held firm.
Why?
Because the fundamentals were still improving. Legal sales were growing year-over-year, new states were joining the legalized market, and companies were becoming more disciplined in their spending.
My patience paid off. By early 2024, my portfolio climbed again, this time more steadily. Trulieve acquired Harvest Health, Green Thumb expanded into new states, and IIPR continued collecting rent and paying dividends.
Eventually, my total value hit $ 3,500.
Lessons Learned
Turning $ 1,000 into $ 3,500 isn’t going to make me rich. But it was more than just a financial win it was a masterclass in risk, patience, and conviction. Here’s what I took away from the experience:
- Speculation requires preparation. I didn’t gamble. I researched, followed trends, and acted with purpose.
- Volatility is your friend if you’re prepared. The dip in 2020 was scary, but it created my best buying opportunity.
- Take profits. Locking in gains is smart, especially in a speculative sector.
- Diversify within the theme. Ancillary stocks and REITs helped balance out the direct cannabis exposure.
- Follow regulation closely. Policy changes can trigger or kill momentum in this sector.
Things To Consider
Cannabis investing isn’t for everyone. It’s volatile, politically sensitive, and still federally illegal in the U.S. But for those willing to dig deep, stay calm during downturns, and ride the waves, it can be a profitable frontier.
I don’t see marijuana stocks as a get-rich-quick play anymore. I see them as a long-term thematic investment, one where the real growth is still ahead especially if federal reform happens.
For now, I’ve kept a core position, reinvested some profits into ETFs like MSOS (AdvisorShares Pure US Cannabis ETF), and continue to watch the space with cautious optimism.
And that’s how I turned $ 1,000 into $ 3,500 with one trade, one trend, and one risk at a time.
