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Deej's Top Pick Update: The World's Top Investors are Juming into Philip Morris International



April 09, 2008 – Comments (3) | RELATED TICKERS: MO

According to a recent article in Forbes, tons of the best investors that its Marketocracy's M100 newsletter tracks the purchases of are "aggressively" buying shares of Philip Morris International (PM), putting more money into it than any other stock right now.  I have been closely following this stock since I did a full write up on it back in November, PMI / Altria: Poised to Smoke the Market, and I own shares of both PM and MO in real life and in CAPS.  Things are progressing as planned, since I did my extensive write-up on the company so I don't have a lot of new information to add right now.  If you don't mind investing in a company that sells tobacco products definitely make sure to check PM out.  I stongly believe that it will outperform the major indicies over the next several years.


Forbes article: Gurus Smoke It Up


Long PM & MO 

3 Comments – Post Your Own

#1) On April 09, 2008 at 9:43 AM, BroadwayDan (97.96) wrote:

Hey Deej, 

I'm not formally religious, but just in case there is a judgment day for each of our souls, there's no way I want profiting off mass murder showing up on the clipboard of the guy listing my sins.  That said I probably own this one in a mutual fund or two.  Big oil, big pharma, the auto industry - people can knock them, but their benefits are massive and undeniable.   Big Tobacco?  I guess one could say that in an overcrowded world, population reduction is a good thing.  

I also think the wording "if you don't mind investing in a company that sells tobacco products" isn't strong enough.  I could live with investing in a supermarket chain that sells some tobacco.  I do mind investing in a company whose mission is to get people - usually, the ignorant, weak, poor and poorly raised, hopelessly addicted to something that is not only going to kill them, but kill them in a slow and agonizing way, a way that destroys the quality of life for their families and contributes to the unbearable stress on the healthcare system of the world.  

"Drugs are a dirty business" - Don Corleone

Lastly, I believe that completely amoral investing is likely to have hidden consequences, such as needling at your peace of mind.  I genuinely think that investing and basically doing anything from a virtuous place is more likely to lead to greater success, both spiritually and financially.  I say, **** Philip Morris and suggest you sell your positions immediately.     



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#2) On April 09, 2008 at 10:49 AM, mandrake66 (71.33) wrote:

Let's just apply the morals equally to all companies. I never hear a bad word about a company like Monsanto, but they make tobacco companies look positively saintly. Their history involves polluting entire communities with dioxins and PCBs, obstructing investigations and covering up evidence, manufacturing little things like Agent Orange, etc. They repositioned themselves as a life sciences company, pushing off all legal obligations from their decades of abuse onto a spinoff company so they can operate free and clear. And now they spend all their time turning food into intellectual property and bullying every farmer and dairy operator who doesn't get in line with endless legal assaults the victims can't afford to fight.

My god, I'd buy a tobacco company any day of the week compared to a company like Monsanto. But it has a 4-star rating and not a bad word about it in the first few pages of picks I skimmed.

That's just one example, how about pharmaceutical companies that market drugs they know to be not only ineffective but dangerous, and publish only the good data while hiding the bad? Oh, let's say, Merck for example? Though I think you could probably pick any of them at random -- Merck has just been caught doing it more than the rest. Another 4-star rating and not a care in the world about the people it killed in the quest for profits.

I think the selective demonization of tobacco companies goes a little far sometimes. And believe me I hate cigarettes with a passion.  

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#3) On April 09, 2008 at 11:37 AM, TMFDeej (97.47) wrote:

Thanks for the comments, Dan.  I see that you feel very strongly about this subject.  I have a very clear conscious and don't lose any sleep because I have invested in Philip Morris or Altria.  The way I see it, we're all adults here.  It's not like this is a company that goes around clubbing baby seals or selling cars that will burst into flames because they internally calculated that is cheaper to settle the lawsuits than it is to fix the problem (Ford Pinto). 

If people choose to smoke, I don't mind making money off of their poor decision.  If you don't look at investments amorally, where do you draw the line?  Do you know how many alcoholics die of liver failure each year and how many homes are ruined by alcohol?  I guess that you can't invest in liquor or beer companies.  Do you know how many compulsive gamblers have driven their families to ruin because they lost all of their money at the blackjack table?  I guess that you can't invest in casinos either.  There are a million companies that are involved in the defense industry that make guns, missiles, tanks, etc... that kill people.  They're out.  I could go on and on. 

It's not like in the old days when people didn't know that cigarettes are bad for you.  Today it says so in HUGE letters and pictures all over the box.  We live in a free world where mature adults make decisions about what to do with their lives.  I can't worry about them.  My duty is to take care of my family the best way that I can.  If that means investing money in a cigarette company because I think that it offers the potential for good returns.  Great.  Other people can take care of themselves.


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