Auxier Focus Fund on Philip Morris International
Thesis
Auxier views Philip Morris as an enduring business capable of adapting to changing consumer behavior. The company has successfully shifted a substantial portion of its business toward smoke-free products. These products now account for more than 40% of revenue compared with less than 5% two decades ago. The transition supports the fund's broader preference for businesses with durable competitive advantages that can evolve through market disruption.
“Philip Morris has been successfully transitioning to more smoke-free products in line with changing consumer habits.”