Ann: Funds Under Management - October 2022, page-27

Some posters here should study the recent history of Altria, a most hated stock in the late 1990s that outperformed the Nasdaq for the next 13 years and became a 3 bagger.

How was this achieved when the dot com bust, 9/11 and GFC all occurred?

Reliable, predictable cash flows and a management that pivoted its strategy when its marketing arms were cut off by the tobacco lobby.

PTM don't sell addictive products but they do have strong cash flows and the investment smarts to re imagine their business point of difference from rules based, momentum driven index funds.

China is a key risk and point of difference for Platinum. I am in no position to cast any opinion on their investments in that country, however, as they release people from lock downs and Xi tries to restart growth and confidence, the basis for a significant short term recovry in profits and prices seems pretty sound. Many share prices remain at depressed levels after Xi took down the tall poppies 18 months ago. He made his point then, but now he needs them firing.

MSCI is still hopelessly overweight the US market that is relying on a FED pivot to prop up over priced asset values amidst a fractured political and economic system of left and right.

Mmmm, which path to take?

GLTASH

PS l know my Altria history and Philip Morris performance stats as a result of a family member that worked in their Melbourne factory and was part of their generous ESP. The shares paid off more than the personal exertion.