Quote:
Originally Posted by Slava
Honestly, if you look at a 10 year chart for something like Altria though, most investors wouldn't be all that disappointed. There are better performing sectors and companies (of course), but those guys have a good dividend and shares have more or less tripled over that time.
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Oh for sure. The people making that argument to me were all bullish. Tobacco has had spectacular returns for decades.
If the going in setup is similar to tobacco (low market interest, necessary product, continual price increase) o&g could do very well. The part that gives me pause is that the cigarette companies can keep production flat with basically zero capex. That is very much not true for O&G.