Auxier Focus Fund on Philip Morris International Inc.
Thesis
Auxier views Philip Morris as an enduring business capable of adapting to changing consumer behaviour. The company has been shifting toward smoke-free products, which now account for more than 40% of revenue compared with less than 5% twenty years ago. This transition supports the fund’s preference for businesses with durable competitive advantages that can evolve through disruption. Philip Morris was also one of the fund’s ten largest equity holdings at quarter end.
“Philip Morris has been successfully transitioning to more smoke-free products in line with changing consumer habits.”