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…
I’m wealthy enough where I don’t need to own a tobacco company & deal with the consequences of public ownership. -Warren Buffett. ESG investing is on the rise as unethical stocks come with a lot of baggage for publicly followed investors. If you’re a closely followed investor, which obviously Warren Buffett is, you are guaranteed…
Philip Morris International (from now on PMI) is probably one of the most “hated” companies on the planet. This black sheep is literally black-listed by all institutions bar a few brave vice funds, which means PMI and other tobacco stocks have a huge base of retail shareholders, just like myself. PMI is a sin stock,…
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…
