Billionaire Stanley Druckenmiller’s Top 10 Stock Picks

6. Philip Morris International Inc. (NYSE:PM)

Duquesne Capital’s Stake Value: $137,745,000

Number of Hedge Fund Holders: 75

Tobacco giant, Philip Morris International Inc. (NYSE:PM), is another top stock pick in Stanley Druckenmiller’s portfolio as of Q3 2024. The company sells products in more than 180 countries across the globe and is currently transitioning to become the largest smoke-free products provider.

As of December 31, 2023, the company has invested over $12.5 billion in developing smoke-free products and has given up on cigarettes completely. By 2030, Philip Morris International (NYSE:PM) intends to become a smoke-free company by a two-thirds majority. While smoke-free alternatives are not entirely risk-free, the company’s products may deliver a reduction in smoking-related deaths by more than 10 times.

Philip Morris International Inc. (NYSE:PM) logged $9.9 billion in sales during the third quarter of 2024, up by 9.6%. 38% of its revenue and 40% of its gross profit came from PMI’s smoke-free business. In addition to that, nearly 36.5 million adult users of PMI’s smoke-free products and nearly 22.1 million adults have switched to its heated tobacco product to prevent smoking. Currently, the company’s smoke-free products are available in 92 markets with close to 40 billion units.

Broyhill Asset Management stated the following regarding Philip Morris International Inc. (NYSE:PM) in its Q3 2024 investor letter:

“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”