Home » sin stocks » Sin Stocks Report: Summer Of Sin #3 — What Are Sin Stocks?

Sin Stocks

We’ve explored the question, “What is sin?” and then “What are stocks?” and now it’s time to put those thoughts together and answer the question that all newbies ask: “What are sin stocks?

What Are Sin Stocks?

Sin stocks” is an informal label used to describe those publicly traded companies whose products may be considered unethical, taboo, dangerous, or potentially addictive.

Most often, the big three types of sin stocks are alcohol, tobacco, and gambling. Those are the default three that most people think of when they think of sin stocks. However, there are many kinds of sin stocks.

The term “sin stocks” is fluid enough that different “sins” may come and go according to the prevailing social values of the time. What we consider a sin stock today might not be a sin stock tomorrow. And what people might consider to be a sin (from a religious perspective) may or may not be a sin stock.

The types of sin stocks will vary, depending on who you ask and when the list is assembled. They are heavily influenced by culture, assumptions, and social values. At SinStocksReport.com, we’ve identified the following stocks as the most common sin stock types (sorted alphabetically):

  • Alcohol sin stocks – companies associated with the production and distribution of alcoholic beverages
  • Conflict sin stocks (often called “Defense sin stocks”, although that term is limited) – companies associated with the production of weapons and military equipment, as well as Private Military Contractors (PMCs)
  • Gambling sin stocks – companies associated with the facilitation of betting and gambling, including casinos and online poker
  • Marijuana sin stocks – companies associated with the production and distribution of marijuana
  • Sex sin stocks – companies associated with the production and distribution of sex, sexuality, and pornography
  • Tobacco sin stocks – companies associated with the production and distribution of cigarettes, cigars, chewing tobacco, and other associated products

There may be others as well that are arguably sin stocks as well. At Sin Stocks Report, we believe the following have potential to be categorized as sin stocks as well

  • Anti-social sin stocks – companies associated with controversial positions (such as those companies that are publicly discriminatory of race, gender, or sexual orientation).
  • Crime sin stocks – companies associated with building and running prisons
  • Ecological sin stocks – companies whose practices have caused ecological damage
  • Financial sin stocks – companies associated with lending practices that could be deemed usurious or predatory
  • Fast food sin stocks – companies associated with unhealthy fast food
  • Sweatshop sin stocks – companies that use overseas sweatshops and even child labor to produce their goods

Some of these sin stocks are labelled as such because of the products or services they sell (i.e. marijuana sin stocks and sex sin stocks), or because of the result of their activities (i.e. ecological sin stocks), or because of who they serve (i.e. crime sin stocks), or because of the impact they have as a result of the products they sell (i.e. fast food sin stocks).

As you can see, the range of potential sin stocks is wide and largely influenced by social values of the day. (Companies that use predatory lending practices, for example, might not have been considered sin stocks in the past and, in fact, aren’t widely considered to be sin stocks today, although they share many characteristics with other more readily-accepted sin stocks.

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.