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Hermann Novakovic's avatar

Awesome write up!

It's really hard for me to not sell PMI due to its valuation and to invest it's proceeds into British American Tobacco

As for the pouches as great as ZYN is in the US, as great and undervalued is VELO in Europe....

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Anthony Yiu's avatar

I see your concern, and sometimes, I am tempted to sell my PMI stake. However, I am still holding my PMI shares, as there could be myriad outcomes of the smoke-free categories. I thought PMI's valuation was rich when trading at mid-to-high teens P/E multiple several years ago, and I thought PMI paid too much for Swedish Match, but I was wrong in both. I am still holding PMI for portfolio diversification, but I don't see any need to accumulate more stake at the current valuation.

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Hermann Novakovic's avatar

Yes, that's a good answer

I may also highlight it's a pleasure holding such high quality company for the long term, for me it's about 4/5 Years

I can also see with this enormous growth, the dividend to be grown even faster

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