Smoking Rich EN

Tobacco stocks - like many other sin stocks - are in my opinion an excellent investment opportunity as they generally offer relatively stable returns with above-average dividend yields when compared to the broad stock market.

People tend to smoke regardless of how the economy is doing (sometimes maybe even more so during bad economic times). The growth prospects with new product line ups of cigarettes that cause less harm, but which still have the look and feel of the real thing (billions of dollars have gone into the R&D of these types of products in recent years) seem very attractive.

This approach focuses on capturing the benefits that this universe of tobacco stocks can offer. It invests in tobacco stocks exclusively with tactical over- and underweights in the individual players based on P/Es, cashflow and dividend yield developments. The aim of portfolio is to never be fully invested, always leaving enough cash at hand in order to profit from temporary corrections or tactical opportunities. Investment horizon is meant to be long term - 5 years or more. show more