There are a lot of potential investments out there and it’s hard for investors to sort through stocks and evaluate each one effectively.
One of the ways investors get around this is by categorizing stocks in similar ways so they can do a better job of comparing apples to apples.
These categorizations come in many forms — Sometimes these categories are formal. Sometimes they are informal. Sometimes they are by industry (such as metals and mining stocks) or sometimes they cross industry boundaries (such as greentech, which covers a wide range of eco-friendly stocks); sometimes they are by market capitalization or sometimes they are by the price of the stock. Sometimes these classifications are very specific (such as graphite stocks).
One informal classification of stock is sin stocks.
Sin stocks is a term investors use to classify certain types of stocks that are associated with society’s “vices” — companies that sell alcohol, tobacco, gambling (and other vices). There are a lot of sin stocks out there!
Even if I’m not a smoker or a gambler (and only a moderate drink), sin stocks are fascinating to me: They thrive even in highly regulated (and sometimes litigious) environments. Some are taboo but some aren’t. Some are (arguably) addictive but some aren’t. There’s a huge barrier to entry around many of them, which helps to keep competition down. And some investors argue that sin stocks are “recession-proof” because people still smoke and drink and gamble in difficult economic times. Although I’ve seen this to be true anecdotally and I have seen some numbers to back this up, I’ve never seen undeniable financial proof that sin stocks are recession proof.
In researching sin stocks, I discovered that there were a lot of people writing about sin stocks but no site that curates information about them. And although I don’t necessarily endorse or use all of the products or services these companies sell, I felt like there was an opportunity to examine sin stock investments. That’s why I started the website Sin Stocks Report.
On this site, I write and curate information about sin stocks for investors who are interested in this group of investments.
I’ve been at it for a few months now and I’ve been surprised at the variety of sin stocks out there — not just in the traditional sin stock areas (like alcohol, tobacco, and gambling) but also in other areas like sex, conflict, and more.
So if you’re an investor who is interested in sin stocks, or you are looking for a new batch of investments to consider adding to your portfolio, head over to Sin Stocks Report and check it out! (Just don’t let your mother catch you!)