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Fidelity Fund's Big Bet On Juul Looms Large Amid Controversy: (FBGRX)

FYI: Juul Labs Inc has become one the biggest bets in the portfolio of Fidelity’s $28 billion Blue Chip Growth Fund, whose exposure to the troubled e-cigarette maker has climbed to $761 million amid a regulatory backlash and departure of its top executive.

Fidelity Blue Chip Growth Fund’s manager Sonu Kalra had 2.7% of the giant fund’s assets invested in Juul as of July 31, the latest fund disclosures show, up from 1.7% of assets a year earlier.

M* Snapshot FBGRX:


  • Let's ban caffeine too because it's addictive - no soda, no coffee.

    Let's also ignore all of the issues with alcohol, combustible cigarettes, weapons, etc., which have all proven much more dangerous. Oh wait, that's what we're already doing.
  • msf
    edited September 2019
    You're conflating delivery mechanism (with various effects of their own) with addictive substances. The addictive substance in e-cigarettes such as Juul is nicotine. Same as in cigarettes, cigars, etc.

    Cigarettes are proven much more dangerous? Fair enough to say that cigarettes are proven dangerous. What one can't say is that e-cigarettes are proven to be less dangerous. Where are the 30 year studies? Oh, wait.

    When even the relatively toothless FDA (I agree with you on that) says that Juul hasn't proven its products to be safer, it seems fair to ask where's the proof (not just fragmentary evidence, but "proof").

    Nicotine issue ignored?

    From an investor perspective, Fidelity went out on a limb investing in a company where (according to the cited article) 80% of its revenues come from flavored products. The historical pushback on cigarette ads targeted at youths was well known before recent events unfolded. Foreseeable risk.
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