International tobacco is the way to go for investors who want to keep their money safe in this volatile economy, says Charles Norton, co-portfolio manager at Vice Fund.
“We’re focused on sectors that have the potential to do very well regardless of economic conditions,” said Norton. The international tobacco industry represents one of many sectors.
“[The tobacco sector is] internationally a great business -- not at all the same type of environment that we are seeing in the U.S.,” he said.
Philip Morris International -- “They have broad geographic exposure -- fantastic first-rate management team, they’re buying back stock, they have a pristine balance sheet, and they have a long-term relationship with China that could amount to something very significant over the next five to seven years.”
British American Tobacco -- “We like companies that are focused globally... Especially in the emerging markets, we’re still seeing consumers trading up to these international brands.”
Charles Norton’s company holds shares in Philip Morris International and British American Tobacco.