Terry Smith: Why tobacco is one of my favourite ever sectors

Benefiting from government opposition and intervention

Veteran investor Terry Smith, manager of the Fundsmith Emerging Equities Trust (FEET), has highlighted tobacco as one of his favourite ever investment sectors, pointing to its strong long-term performance.

Smith (pictured) holds 7.5% in tobacco companies in his investment trust, including Egyptian firm Eastern Tobacco and Indonesian company Sampoerna. Tobacco firms are also prevalent within his £5.5bn Fundsmith Equity fund, which applies a similar investment strategy to FEET but across developed markets; Philip Morris and Imperial Brands are both in his top five holdings. Speaking at a seminar run by Frostrow Capital, which provides secretarial services to FEET, Smith said: "Tobacco is one of the best-performing sectors ever created. It is living proof the best industries are those whic...