We have made it routine to revaluate our positions from time to time. Although we put a lot of time and effort into analyzing investment opportunities before initiating a purchase, it is possible that we miss something. Other times, new information comes out which forces us to reconsider our investment. For instance, when J.M. Smucker (SJM) increased its dividend below my expectations, I chose to slash it from my portfolio.

Such reviews only have three outcomes: sell, hold or buy more. During a discussion with Robert over Christmas, we came to the following conclusion:

The next decade will make or break Altria as a company. During the first half of the decade, the company will be able to leverage its pricing power to continue to offset volume declines. But because elasticity increases each time the company increases prices, it is paramount that in the second half of the 2020s, Altria’s bets in other segments drive significant growth.

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