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Investors quit smoking. Why Not Alcohol?

Some sin stocks seem to be more easily forgiven than others. Investors ’fondness for liquor over cigarettes is a puzzle, though it shows little sign of immediate change.

The tobacco sector shows how quickly these well-known investments can increase if regulators decide to deal with addictive consumer products. Five years ago, the average projected earnings of large cigarette stocks were trading 19 times higher, with a total shareholder return of more than 20% from 2000 onwards, more than four times the S&P 500 average. They’ve been immersed since then and now only get it 11 times, under the threat of stricter tobacco laws, including the latest proposals to ban menthol flavors in the U.S.

Investors quit smoking. Why Not Alcohol?

Source link Investors quit smoking. Why Not Alcohol?

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