Process over outcome. I agree with the philosophy of being a bit more willing to let things run than is instinctive - largely for the two reasons that (a) our instincts don't have a good grasp of the tax effects of selling more frequently, and (b) all the best value investors seem to agree you need to do so.
But I'd just be cautious about letting your experience with Sprout Farmers Market guide your thinking too heavily - it is only one example, and the market obviously does funny things from time to time. Don't be guided by regret aversion. The multiples available on other tobacco companies are a lot lower - to the extent that you would probably need to expect PM's earnings to triple over the next decade relative to BAT's in order to justify the valuation gap.
Process over outcome. I agree with the philosophy of being a bit more willing to let things run than is instinctive - largely for the two reasons that (a) our instincts don't have a good grasp of the tax effects of selling more frequently, and (b) all the best value investors seem to agree you need to do so.
But I'd just be cautious about letting your experience with Sprout Farmers Market guide your thinking too heavily - it is only one example, and the market obviously does funny things from time to time. Don't be guided by regret aversion. The multiples available on other tobacco companies are a lot lower - to the extent that you would probably need to expect PM's earnings to triple over the next decade relative to BAT's in order to justify the valuation gap.