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Avoiding tobacco stocks in my IT portfolio

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richfool
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Re: Avoiding tobacco stocks in my IT portfolio

#80606

Postby richfool » September 12th, 2017, 11:39 am

Dod1010 wrote:
richfool wrote:I notice that the Invesco Perpetual IT's (EDIN, PLI & IVI, & KIT) have significant holdings of tobacco stocks in their top ten holdings. That along with their holdings of Provident Mutual may well have contributed to their recent falls down the performance tables.

http://citywire.co.uk/money/investment- ... ePeriod=12


Yes but I would not (and do not) worry about the tobacco stocks. They will keep churning out the dividends. As for PFG I would be much more concerned about it, if I held it. I do not and never have.

Dod

My view is that tobacco stocks have had their day and were becoming over-priced, and will in the future decline (or from some point in the future). Thus my reasoning for not wanting to hold them, directly or indirectly, if possible. That's just my view.

My latest point was that the recent fallback in their share prices will have contributed to the poorer performance of IT's with significant holdings of tobacco stocks, such as those in the Invesco Perpetual stable and Neil Woodford's funds, though I note he shed BATS back in July this year.

http://www.portfolio-adviser.com/news/1 ... cco-stocks

I am hoping that Bruce Stout (MYI) gets out, as I am aware he has significant tobacco holdings.

Kantwebefriends
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Re: Avoiding tobacco stocks in my IT portfolio

#80751

Postby Kantwebefriends » September 12th, 2017, 10:19 pm

"... initiatives in the US to reduce nicotine in cigarettes has adversely affected ...": how odd. If smokers smoke because they are addicted to nicotine then they'll presumably smoke more cigarettes if each one contains less nicotine. That seems to me to imply more income for the tobacco companies. OK their customers will die younger because they will be inhaling more smoke but that effect will be some years away.

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Re: Avoiding tobacco stocks in my IT portfolio

#81363

Postby moorfield » September 15th, 2017, 3:21 pm

Dod1010 wrote: I appreciate that moral or ethical questions are very personal and I am more concerned about gambling and alcohol related shares.


It's a good point - and every company presents moral or ethical questions if one looks hard enough. From my own portfolio I hold, not naming names:

Environmental polluter
Animal tester
Peddler of derivative finance to small businesses
Manufacturer of tobacco products
Exploiter of zero-contract employees
Exploiter of third world employees
Exploiter of indigenous rainforest
Government briber/palm-greaser

richfool
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Re: Avoiding tobacco stocks in my IT portfolio

#83676

Postby richfool » September 26th, 2017, 2:34 pm

Apparently, I am not the only one to have negative thoughts about the future prospects for tobacco stocks:
Extract from Motely Fool article:
But the rising headwinds in developing and emerging economies alike, from public smoking bans to the introduction of plain packaging, has caused me to revise my previously-bullish perspective. Indeed, the US Food and Drug Administration’s plans to possibly cut the levels of nicotine in cigarettes to non-addictive levels, which was declared in August, was the final straw for me.
Fighting or flailing?

The industry is fighting a fierce rearguard action to stop sales falling off a cliff, underlined by the vast amounts manufacturers across the sector are ploughing into the e-cigarette sector.

http://www.fool.co.uk/investing/2017/09 ... oid-today/


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