Sin Stocks
Sin Stocks refer to Shares in companies that are involved in industries considered unethical or morally questionable. These industries often include alcohol, tobacco, gambling, and firearms. Investors in sin Stocks may be motivated by high Returns, as these sectors can be less affected by economic downturns, but they may face criticism for supporting businesses that contribute to social issues.
Examples:
- Alcohol: Companies like Anheuser-Busch InBev and Diageo.
- Tobacco: Firms such as Philip Morris International and Altria Group.
- Gambling: Entities like Las Vegas Sands and Caesars Entertainment.
- Firearms: Companies such as Sturm, Ruger & Co. and Smith & Wesson.
Cases:
- In 2020, investors focused on the tobacco industry noted steady profits despite declining smoking rates, highlighting the potential for sin Stocks to provide consistent Returns.
- During economic recessions, gambling companies often experience stable Revenue due to the perceived escapism they offer, making them attractive to investors.