How Tobacco Became One Of The Greatest Investments In History
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 15 October 2020
⏱️ 55 minutes
🧾️ Download transcript
Summary
For over a century, tobacco stocks have been among the greatest investments in history, consistently outperforming other sectors decade after decade. But what is it about tobacco companies specifically that has led to this incredible performance? On this episode, we speak with financial advisor Lawrence Hamtil along with Gene Hoots, a financial advisor and the author of “Going Down Tobacco Road”, to discuss the extraordinary performance of this sector.
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| 0:00.0 | With Bloomberg you get the story behind the story, the story behind the global birth rate, |
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| 0:10.8 | And context changes everything. Go to Bloomberg.com to get context. Hello and I'm Tracy Allaway. |
| 0:26.0 | Hello and welcome to another episode of the Odd Lots podcast. |
| 0:30.0 | I'm Joe Wiesenthal. |
| 0:32.0 | And I'm Tracy Allaway. |
| 0:34.0 | Tracy, you know, one thing that sort of characterizes the stock market these days |
| 0:40.0 | is just this incredible dominance of a handful of gigantic tech companies. |
| 0:46.2 | I mean, you pointed out today, I think you tweeted a chart this morning just showing |
| 0:50.8 | how like if you exclude just a handful of like five companies or whatever the |
| 0:55.6 | S&P 500 is basically going nowhere. |
| 0:58.0 | Yeah, that's exactly right. So I think it's if you exclude Facebook, Amazon, Apple, Microsoft, and Google and just look at the remaining |
| 1:08.5 | 495 companies in the S&P 500, the index is actually down 1% so far this year. |
| 1:15.0 | And if you only look at those five tech stocks, |
| 1:19.0 | those are up 40 or almost 40% this year, |
| 1:22.0 | which is phenomenal. |
| 1:24.6 | And because they're such a huge part of the index, |
| 1:27.0 | of course, they pull the whole thing up to about 6% year today. |
| 1:31.8 | What do you think about those articles, you're a journalist, what do you think about those |
| 1:35.2 | articles that are like, oh if you had invested? |
| 1:38.0 | You say that like you're not. |
| 1:40.0 | Oh, you're a journalist. |
... |
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