Why Invest in sin stocks?
There are lots of good reasons to invest in sin stocks but since I’m not a licensed financial advisor, I can only give you the reasons that I think something might want to possibly (maybe) take a closer look at these stocks before they do their own due diligence.
Sin stocks are highly regulated, often dangerous, sometimes socially unacceptable, and yet let’s be honest… people can’t get enough of sex, booze, and smokes. Here are some reasons that sin stocks might be a great investment…
- Sin stocks are sometimes addictive.
- Sin stocks often provide an immediate, satisfying result to a long-term need.
- People still buy the products and services that these companies offer, even against the advice and pressure of their conscience, their parents, their spouses, society, religion, and government. (Just look at Prohibition as an example of the last one).
- These products and services need to be purchased over and over, creating constant, ongoing positive cash flow.
- High regulation helps to keep competition down.
- There is a big “moat” around these companies — you or I can’t just run out and start a tobacco company, skin magazine, or national-scale brewery.
- Prices continually rise on these services (and yet people are attracted to them like moths to a boozy flame).
