Saturday, 3 June 2017

Big tobacco's So much profits

Smoking is dangerous to Health and it Kills, So if you're in an industry where your product is known to be damaging the health of people who buy it, then you should, in theory, go out of business.
companies listed in the Bloomberg tobacco producers index have risen 351 percent since 2009, making it one of the best investments of the past decade.
Labels warning and taxes seem to have some effect on reducing the number of smokers but less so on industry profits which keep rising. And investors can't quit buying the stocks because operating profits continue to go up.
Different tax regimes around the world mostly account for the difference in price of cigarettes. But governments are not as hooked as the consumers who buy cigarettes. Consumers cough up for higher prices because they crave the drug in tobacco

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