Daily Archives: April 26, 2018


BAT Stock Purchase – Why Sin Stocks Outperform The Markets Over The Long Term


Sin stocks are profitable for investors. There is no two ways about it. Whether you are talking tobacco, alcohol, sugar, gambling or defence, all these categories have comfortably outperformed markets over the long term. Just look at the most profitable stock over the past 50 years, Phillip Morris, a Tobacco stock. The top 3 sectors over the past 82 years were cigarettes at 8.34% real annualised return, beer at 7.51%, and oil at 6.84%. Investors in “ethical” funds that avoid these sectors are virtually guaranteeing drastic underperformance. It is no surprise to see Tobacco topping the list. I have already written about the fantastic economics around cigarette manufactures so I […]