I wrote an article about sin stocks’ historical performance some months ago. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article, I briefly argue why and why they most likely continue to outperform. Tobacco stocks outperform the market because they have high margins, the regulation makes…
Altria is a legendary tobacco company that was split in two in 2008 when Philip Morris became the international part of the cigarette business while Altria distributes cigarettes only in the US. In 2019 the companies tried to merge (again), but it was postponed. Tobacco stocks have been the best performers over the last 100…
A specific group of stocks has outperformed the rest of the stock market by a wide margin: Sin stocks. We can also label these stocks “unethical stocks”. Sin stocks outperform the market because the industry has high barriers to entry, high margins, requires little capital, the products are addictive, and regulation leads to oligopoly for…
