Tag: buybacks

Why Tobacco Companies Have Been A Good Investment

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Some months ago I wrote an article about the historical performance of so-called “sin-stocks”. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article I briefly argue for the reasons why and why they most likely continue to outperform. High margins and cashflows: Margins are very high. For example, 27% of the

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A Long-Term Investor Wants The Share Price To Trade Around Intrinsic Value

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Let’s assume you buy Disney at 100 and one year later it trades at 130. A 30% return in one year, isn’t that great! Some time ago I used to cheer when my stocks rose to new highs. It felt great to count the paper profit but as a long-term investor this logic is irrational. Why? Because the only time

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