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

The hottest Substack posts of Reflections on "Going Down Tobacco Road" and Investing

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530 implied HN points 18 Jul 23
  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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353 implied HN points 20 Jun 23
  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.
334 implied HN points 06 Jun 23
  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.
353 implied HN points 23 May 23
  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.
216 implied HN points 09 May 23
  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.
117 implied HN points 28 Mar 23
  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.
98 implied HN points 14 Mar 23
  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.