Over the next five years I would expect expanded legalization of recreational and medical marijuana. Green Thumb is already proving to be profitable solely based on state by state legalization. As more states pass legislation to legalize, and ultimately at the federal level, Green Thumb is poised to be a leader in the market.

Green Thumb Industries is executing a very smart growth strategy as a multi-state cannabis operator in a booming market. The company is essentially vertically integrated, controlling its entire supply chain. It focuses on markets where there is either 1) a $1B+ in annual spend or 2) a limited number of licenses available. The company also focuses on higher margin derivative products (e.g. vapes and edibles) as opposed to lower margin flower. Revenue has grown rapidly, and the company has recently reported positive net income as growing brand awareness has allowed it to dial back sales and marketing spend. The company should continue to see high growth over the coming decade as government at the federal and state level embraces marijuana legalization and the cannabis market grows rapidly.