10 Best Cannabis Stocks to Buy According to Billionaires

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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

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