The table above provides a peek at what they have picked up near the checkout counter. The tobacco companies have tried to create legal structures that will insulate their non-tobacco businesses. Investors probably will not find out until it is too late to do anything about it. Am Brands continues to have a significant tobacco business overseas, unfortunately, so its shareholders still may not be off the nicotine hook. This indicates that, though the market is charging a risk penalty for tobacco exposure, so far the penalty is rather modest compared to the potential loss.
Any investment represents a balancing of risks and benefits.
In the case of tobacco the normal risks of the business are dwarfed by the peculiar hazards of the product, to the point that the companies themselves do not know what the risks really are. Please visit our complete website by clicking here.