Smokers!
I absolutely love people who smoke as long as they are not puffing in my vicinity. Cigarette makers are humongously profitable companies and good for investments even after all the legal issues etc. I own Altria (MO) and will continue to do so for a long time to come. It costs Altria about $16-17 to make 1000 cigarettes. The price for a pack of cigarettes is about $5. Even if more than half of that goes in taxes, Altria gets at least $2 per pack, I suppose. That is $200 for goods that cost $17 to make. Excellent profit margin!
On the other hand, my employer makes Chantix, the latest smoking-cessation drug to come on the market. So, people who want to stop smoking after generating some revenue for Altria, can now make revenue for my employer by buying Chantix.
Now, if people could smoke for some time, then use Chantix to stop smoking and then take it up again after a few years and repeat this cycle over and over again, it will be perfect for my portfolio.
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Hey, capitalism at its best…Mr Ray Croc feeds people absolute junk and makes a packet. Tony Little then steps in and sells Gazelles…both laugh all the way to the bank…
Well done Uncle Sam…
Vinayak: That is the beauty of capitalism. People have many choices to lead their lives whichever way they want to.
Didn’t Altria spin off Phillip morris? so technically altria is a good stock but not becoz of there tobacco business anymore.. Well said like a true capitalist.. All businesses are there to provide a solution and you cannot have a solution unless you have a problem.
I was searching for \’Diet Maker\’ at google and got this your post (\’! at Blog of Parag\’) in search results. Not very relevant result, but still interesting to read