WARREN BUFFETT AND CHARLIE MUNGER – CONFLICTED ON TOBACCO [i] For more than 40 years Warren Buffett and his partner Charlie Munger have wrestled with whether to invest in tobacco. They have invested in stocks and bonds of tobacco related companies -not a surprise. These businesses all meet the Buffett tests of a good investment. Yet, the partners have acted sometimes in ways that appear to contradict their decision-making rules. They have made it clear that their reasons go beyond making money.
Great story! As always, you can “reason” your way into any decision. It reminds me of George Costanza on Seinfeld once saying “It’s not a lie, if you truly believe it!”
I’ve never smoked but I started to buy tobacco stocks simply because interest rates went to zero. So I had to compensate for my lack of fixed income yield. Alcohol is probably worse and sugar is highly addictive too, but it doesn’t suffer from the same stigma as tobacco.
Gene, I've thoroughly enjoyed reading your views on this. While so many of us have only been able to piece it together by scouring through filings and other bits of history, you've been able to provide first-hand perspective having lived and operated through it all. One thing I didn't include in my piece on Berkshire and Buffett's investment history concerning tobacco is the recent acquisition of Pilot. No doubt a good % of related store sales are from tobacco products.
Great story! As always, you can “reason” your way into any decision. It reminds me of George Costanza on Seinfeld once saying “It’s not a lie, if you truly believe it!”
I’ve never smoked but I started to buy tobacco stocks simply because interest rates went to zero. So I had to compensate for my lack of fixed income yield. Alcohol is probably worse and sugar is highly addictive too, but it doesn’t suffer from the same stigma as tobacco.
Gene, I've thoroughly enjoyed reading your views on this. While so many of us have only been able to piece it together by scouring through filings and other bits of history, you've been able to provide first-hand perspective having lived and operated through it all. One thing I didn't include in my piece on Berkshire and Buffett's investment history concerning tobacco is the recent acquisition of Pilot. No doubt a good % of related store sales are from tobacco products.