Dec. 5 marked the 85th anniversary of the passage of the 21st amendment to the Constitution and the end of America's 13-year experiment with "Prohibition."
Maybe you bent an elbow in honor of Repeal Day.
As cannabis investors, the lessons of 1933 are all too relevant today: That was the year the country saw illicit revenue for criminals become fully legal profits for savvy investors and entrepreneurs who accurately gauged the desire for consenting American adults to have a stiff drink if they wanted.
Although Dec. 5 represented the "official" end of Prohibition, several events happened before and after that date to usher in the return of legal alcohol to the United States.
A lot of it had to do with the fact that Prohibition wasn't working: Big U.S. cities had hundreds of speakeasies, where the well-connected could get alcohol at will, whether smuggled in across the border or made in "bathtub" stills.
The ones profiting most from Prohibition were the Al Capone types – gangsters, bombers, and gunmen who turned American neighborhoods into violent charnel houses and free-fire zones with their "Chicago typewriters."
In the end, Prohibition's repeal only became possible when many one-time supporters began to reconsider their positions and join those who had previously been in opposition.
One prominent person who changed his mind was John D. Rockefeller. He was a lifelong "teetotaler" who originally supported Prohibition but changed his mind when he saw that it wasn't working. He put his political clout and considerable bankroll behind bringing about change.
It's such a natural parallel with cannabis today…
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.