Smoke Marlboro? Buy Marlboro!

One of my investment strategies is to invest in companies with great MOAT. Moat is widely used by value investors. Marlboro is a strong cigarette brand. Even a non smoker like me know what is a Marlboro. So now how to invest in Marlboro? Invest in Philip Moris (PM) or Altria (MO).

“The term economic moat, coined and popularized by Warren Buffett, refers to a business’ ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms.”

This two company are almost similar. Except the target geography is different. Investing in tobacco company is not very ethical therefore you don’t see much famous investor put money into this sector. Refer to this link for more information on how Tobacco is damaging people’s life. 

Just beware that smoking pick up rate has also decrease over the pass few decade. So it will affect revenue. All in all i am always long on tobacco companies, always looking for chance to buy the dip.

Rolex King marlboro


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