We are buying 40 shares of Estee Lauder at roughly $219.55 a share each. Following Tuesday's trade, the Trust will own 250 shares of EL, increasing its weighting in the portfolio to 1.88% from 1.58%. Shares of this prestige beauty company have been hit hard to start the new week due to worries about rising Covid cases in China and new lockdowns.
Estee Lauder gets about one-third of its sales from travel and its travel retail business is highly dependent on tourism in Asia. Due to our belief that it's only a matter of time before China breaks away from zero Covid and reopens its economy, we believe those associated selloffs in Estee Lauder represent long-term buying opportunities.
Chiina had his own vaccine which was injected into each Chinese and today the virus is troubling again in a big manner. It proves how effective was the vaccine and it's vaccination program. It's a big failure for both Chiina and the world. But world will recover sooner or later.