Talk about a simple story. Legal sale of addictive drugs. Inelastic demand and amazing margins.
So simple that the company could move to the Nasdaq and change their symbol to DEAD and see no adverse effects.
So simple that I am too stupid not to have my whole investing portfolio in the damn stock.
That said, I will pass again and will always pass on MO. I don’t think you ever can go wrong owning Tobacco. Here’s why – LOBBYISTS and cash. Like the balance sheet of MO means anything. More like friendly government, MO uptrend, unfriendly government, MO stalls. So why do I always pass?
I am constantly reminded of a TOP TEN all-time scene in Defending Your Life. Albert Brooks is on trial for his life and the subject of investing comes up. Long story short, the flashback to his turning down an investment of Casio as start-up by saying to his friend: “The Swiss Keep Time”. Classic line, awesome flick.
MO is my Albert Brooks, my Cliff Claven, my Costanza. Why should I change now?
Truly though, I am so confident in lobbyists and the basic right for Americans to smoke and kill themselves that I should own the stock. Even so, I think this is one of those franchises you need to buy on excessive pessimism and unfriendly times and not pay up.
I am sure my friends over at Wallstrip the Conversation have lot’s more to say. The insight from the bloggers so far has been tremendous. Take the time and get to know them.
Disclosure – I don’t own MO and smoke (tobacco) rarely. When I do smoke, I don’t inhale :) .
I was wondering what that was on your shirt in the original wallstrip video.
liar.
The funny thing is about simple stories and knowing a stock is great…a lot of people just miss it.
I mean 14 years ago most people who knew of Buffett agreed he was one of the GOAT, but they probably did not think BRK was going to be a ten bagger. But it is.
Simple = $$. Right on HL.
Yeah… Howard doesn’t smoke :)
http://www.flickr.com/photos/minic/257298625/in/set-72157594307286218/
This was one of the best Wallstrips yet. I want to hire that guy for my site!!! LOL!
Looks like he may have put on a little rouge for the camera shot.
$10-$85 in a handful of years with a nice dividend. Best equity investment over the last six years. It started out on the hated list, no risk people would quit enjoying nicotene, massive cash flow, very low price to book. Someone has been chain smoking some fatties.