Read on Twitter
For all tobacco investors, the latest from @JonFell73 & co at Ash Park is a wonderful read. h/t @x__Alberto__x
https://tobaccotransformationindex.org/docs/AshParkTobaccoTransformation.pdf
https://tobaccotransformationindex.org/docs/AshParkTobaccoTransformation.pdf
"Tobacco is the only Staples industry in which prices can consistently rise higher than inflation, and excise structures create a further advantage for manufacturers in disguising the level of price increase they themselves take."
"Global earnings for the Tobacco sector have grown at nearly 5% a year in USD over the last decade, nearly three times the rate of the market"
So forget all the narratives we tell ourselves to say this time is different; the reality is that tobacco stocks simply fell out of favor, and that is reflected in massive multiple compression
"[B]y diverting all their free cash flow to share repurchases, three of our Tobacco holdings could buy back all their shares and take themselves private – without increasing debt levels – in eight to nine years."
!["[B]y diverting all their free cash flow to share repurchases, three of our Tobacco holdings could buy back all their shares and take themselves private – without increasing debt levels – in eight to nine years."](https://pbs.twimg.com/media/EpddNdzXcAcrLHD.jpg "\"[B]y diverting all their free cash flow to share repurchases, three of our Tobacco holdings could buy back all their shares and take themselves private – without increasing debt levels – in eight to nine years.\"")
