"My top stock pick is British American Tobacco," he tells Business Insider SA.
The company is geographically diversified with a mix of developed and emerging market exposure. It also has a good management team, generates strong cash flows, continues to gain market share, and is investing in next generation smoking products (such as vapour and heat-not-burn).
British American Tobacco trades at substantial discounts to its peers and global consumer staple companies. The market has taken an overly pessimistic view that tobacco has become less defensive, especially with the entrance of next-generation Products, and that possible US restrictions will be very onerous for tobacco companies.
The stock is undervalued and trades at 12 times its earnings (PE), offering an attractive 5.5% dividend yield.