Archman Investor

Will Altria Group Burn Out Long Term?

I didn't find this article useful other than the pretty picture with all the dots. Maybe if I had a few drinks while looking at it I would have found more meaning in it.

The largest negative I see is the constant threat of litigation.
Sure cigarette volumes will continue to go down, however they will still be offset by the smokeless market and the number of people who do continue to start smoking. I will be long in the ground before MO is forced to go out of business due to no one using their products.

In the meantime, I can collect a 7% annual yeild, when combined with lets say a meager 5% capital appreciation in the stock itself would give me a total return of 12% / year for the foreseeable future.
(Lets assume its annualized to account for good and bad stock price years)

Oh sure, the overall phony stock market itself, juiced by FED/ Treasury money will far outpace MO, however when that baby crashes and burns, MO will have held its value.

Not being a gambler myself, and having a portfolio that is at 2009 levels, not at 1999 levels like average Americans have (thanks to all the bubbles and crashes) proves to me that investing as an "investor" pays VS investing like a gambler.

Having a real investment plan also helps.

Note: I am long MO and PM as "investments".

compdivplan.com

Market Stress Leads to More Smoking, Switch to Cheaper Brands

<<This article should refer to MO, PM is only active outside the United States. Got Fact Checking? Reply >>

Nah. Its more fun to lump everyong in one spot. That way its meets their hidden agenda to bash companies they might not like or have some other position in.