Home » sin stocks » Sin Stocks Report: Summer Of Sin #6 — Do Sin Stocks Make Good Investments?

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Now we’re getting into the crux of the issue! We can talk about sin stocks all day long but what really matters is, do sin stocks make good investments?

Do Sin Stocks Make Good Investments?

This sounds like an easy question but it’s actually a hard question to answer.

Look, everyone wants a one word answer “yes” (or “no”.) But that’s not how it works. Here’s why:

Everyone is unique in their investment preferences — a mix of risk preferences, return goals, and timeline.

Maybe you love risky deals. Maybe you love very conservative safety. Maybe you love cash flow. Maybe you love buy and hold. Maybe you love emerging markets. Maybe you love investing in American companies. Maybe you need to make a lot of money now. Maybe you’re saving for retirement.

In short, every person’s investment preferences are like a fingerprint, some mix of risk, returns, and timeline parameters.

But there’s more: your investment parameters are also influenced by what you already hold in your portfolio.

Maybe you love American blue chip stocks, and that’s good but a good financial advisor might tell that your portfolio is overweighted in blue chips based on your timeline and risk profile. So you might want a good old American brewery in your portfolio and it might make sense in some situations but not with your current investments.

So, are sin stocks good investments? There are A LOT of sin stocks out there for investors all around the world with just about any mix of investment parameters.

Your job is not to look for a “yes” or “no” but to look at your own personal investment preferences, as well as what you are already invested in, and then use that information to look at the big list of sin stock investments to see if there are a few potential investments that will work for you.

And once you’ve narrowed it to a few from that big list, then it’s time to do your due diligence.

See the difference in our approach? Rather than saying something stupid like, “yes, all sin stocks are a great investment!” (which you might see on other investing news websites), we take a more sensible approach to say: “there are probably sin stocks that fit your investing profile based on your investing parameters and what you already hold in your portfolio.”

Of course that’s not the ONLY answer to this question. That’s the first and most important answer because it sets the mindset you need to invest in sin stocks correctly. But we will look at the specific things that, in our opinion, make sin stocks a compelling investment category as a whole.


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.