Although British American Tobacco’s (BTI, Financial) earnings were growing, its shares were priced for rapid fade heading into the fourth quarter, in part because of tax-loss selling. During the quarter, the company benefited from news that the US Food and Drug Administration was planning to regulate e-cigarettes, which it did at the start of the new year. Regulation provides the company with some additional clarity about its operating environment moving forward. We consider British American Tobacco a well-run company, and we think that it should be able to navigate the complexities new regulation represents.
From First Eagle Investment (Trades, Portfolio)'s Global Income Builder Fund fourth-quarter 2019 shareholder letter.
