Posted on 04/17/2016 7:20:51 AM PDT by Red in Blue PA
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The Norwegian oil fund’s decision to dump tobacco companies has cost the world’s largest sovereign wealth fund $1.9bn in missed profits over the past decade.
The losses have prompted hardened campaigners for tobacco divestment to admit the economic arguments for shunning companies like Philip Morris and Imperial Tobacco are flawed, potentially leading other big investors to review their exclusion policies.
(Excerpt) Read more at ft.com ...
Calpers, the largest US public pension fund, is already reassessing its stance on tobacco after discovering it has suffered around $3bn in missed profits as a result of blacklisting the sector in 2000.
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I’ll gladly take their money......am a big believer in the so-called “vice” stocks such as tobacco, alcohol, gambling and guns.
If they want to give up profits on legal activities, that is their prerogative, but it is a stupid one.
Actually, it may not be their prerogative. Since funds like CALPERS are investing other people’s retirement funds, the trustees have a fiduciary responsibility to maximize returns. They are not free to pursue their own personal political agendas and may be liable if they have been doing so.
I remember how decades agothere were pressures to not invest in South Africa. this is the same idea to show disapproval by your Investments.
Next up liberals will press to disinvest from anyone doing business in or with North Carolina over the trans bathroom issue.
Exactly.
I urge these funds to get rid of their tobacco stocks. Tobacco is an evil, addictive product that you can make a ton of money from. The lower the stock prices, the more money you’ll make.
I agree. Hopefully some lawsuits will start to be filed.
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