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Sin Stocks

Sin stocks. Some people think they are unethical. Maybe you do too. But even if the products themselves are not something you’d buy, what about the stocks? You might be asking, “Am I unethical for investing in sin stocks?

Am I Unethical For Investing In Sin Stocks?

Ethical investing is a popular movement right now, and ethical investors typically eschew what they believe to be “unethical” stocks. But are those companies wrong to own?

In these situations, you can’t just approach sin stocks as a whole, you need to narrow your focus. For example, how do you feel about cigarettes? Pot? Alcohol? Gambling? Defense? Prisons?

Everyone has a difference set of values and ethics. For example, many Americans are fine with alcohol products and the services of a defense company… but they may have a problem with a sin stock that sells sex or pot. And very few are aware of prison stocks.

And it can get even more granular than that: ask even the most conservative people what their values will allow them to consume and they may say no to almost everything except for wine… well, there are alcohol sin stocks that focus on wine, so are they okay with owning that particular stock?

Your religion, upbringing, values, and political views will shape whether you feel certain stocks are ethical or unethical to invest in.

As well, investors should come to terms with the fact that owning stock in a company may or may NOT be tacit approval for what that company sells. To use a non-sin-stocks example, you may be extremely eco-friendly but do you own stock in a car company? Does that mean you approve of the impact that automobiles have on the environment?

So, are you unethical for investing in sin stocks?

Ultimately, this is a question every investor needs to answer for themselves. Ask yourself: Do you feel okay with the product or service that the company sells, and then, do you feel okay owning a share of that company?

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.