|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Value Investor Tom Russo Sees Opportunity in Tobacco
Posted by: CanadianValue (IP Logged)
Date: February 7, 2013 03:38PM
Warren Buffett has avoided direct investments in the cigarette industry because he is not comfortable with the product. Tom Russo however owns shares in Philip Morris International (PM), British American Tobacco (BTI) and Altria (MO). Why does he own them?
- These tobacco companies are taking the cash flow from developed markets and using it to grow demand in the developing markets which are having population growth.
- Russo thinks these companies are somewhere between growth and value companies.
- E-cigarettes are a new product that could create some growth domestically.
- When asked whether the decrease in cigarette demand would eventually decrease in China and other countries as it has in the U.S. Russo agreed that it would over time.
Here is the link to the radio interview with Bloomberg’s Tom Keene and Russo:
Guru Discussed: Tom Russo: Current Portfolio, Stock Picks
Stocks Discussed: MO, PM, BTI,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.