Reflections on "Going Down Tobacco Road" and Investing

This Substack delves into the history and impact of the tobacco industry, focusing on R.J. Reynolds and investment strategies including those by Warren Buffett. It explores historical financial schemes, analyzing failures and successes, while occasionally covering unrelated historical figures and frauds to draw lessons on risk and opportunity.

Tobacco Industry History Investment Strategies Financial History and Schemes Corporate Acquisitions Market Analysis Historical Fraud Cases

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BERKSHIRE HATHAWAY’S TOBACCO HISTORY

530 implied HN points • 18 Jul 23
💰 Finance Investments Market Analysis Bonds
  1. Warren Buffett invested in tobacco businesses like R.J. Reynolds, showing a historical investment pattern.
  2. Buffett sold his R.J. Reynolds stock in 1984, missing out on higher returns, showcasing his investment strategy.
  3. Buffett made a successful investment in RJR Nabisco bonds in 1989, demonstrating his keen awareness of financial risks and rewards.
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FROM RUSSIA, WITH LOVE?

353 implied HN points • 20 Jun 23
💾 History Communism
  1. Russia has a long and tumultuous relationship with tobacco, with bans and regulations changing over the centuries.
  2. Russian history shows unusual bans such as forbidding the killing and eating of cows, playing cards and dice, and eating rounded fruits on specific days.
  3. Leaders like Peter the Great and Paul I of Russia implemented strict rules on appearance and language to align with foreign standards.

THE LADY WITH HYPNOTIC EYES

334 implied HN points • 06 Jun 23
💾 History Scandal Crime Fraud
  1. Cassie Chadwick was a skilled con artist who defrauded people through various schemes and multiple identities.
  2. She managed to borrow large sums of money by claiming to be Andrew Carnegie's illegitimate daughter, forging promissory notes, and exploiting people's reluctance to question Carnegie.
  3. Her extravagant lifestyle and fraudulent activities eventually led to her downfall, imprisonment, and death at the age of 50.

TOBACCO STOCKS - UPDATE AND ANALYSES

353 implied HN points • 23 May 23
💰 Finance Stocks Analysis Investing Companies Market
  1. Tobacco stocks have generally had negative returns in 2023, except for Japan Tobacco.
  2. Despite declining cigarette volumes, 'Nicotine Delivery' companies are maintaining price increases and generating cash flow.
  3. Analysts are providing detailed reports on tobacco companies, their products, and industry trends.

THE MISSISSIPPI SCHEME 1716-1721

216 implied HN points • 09 May 23
💾 History Human behavior
  1. The French suffered economic collapse due to John Law's schemes.
  2. Law faced consequences of the scheme's failure: being forced to leave France and losing his wealth.
  3. The story highlights the dangers of herd behavior in financial markets and how modern technology disperses this potential frenzy.

THE MISSISSIPPI SCHEME 1716-1721

117 implied HN points • 28 Mar 23
💾 History Economic Crisis
  1. John Law's economic and business plans started to unravel, causing stockholders to worry and shares to be sold.
  2. Currency controls were imposed to restore paper credit but ended up causing distress and discord among the people.
  3. The Mississippi Scheme led to disillusionment as shares plummeted and efforts to restore public confidence failed.

THE MISSISSIPPI SCHEME 1716-1721

98 implied HN points • 14 Mar 23
💾 History Economic France Stock Market Wealth
  1. John Law introduced paper currency and became a successful economic figure.
  2. The popularity of Law's bank and his Mississippi Co. led to extreme demand and mania in the market.
  3. The bubble created by Law's financial schemes eventually started to deflate, causing economic turmoil.