When people invest in the stock market, they often put their money into companies related to their field. A computer engineer, for instance, might invest heavily in technology giants, and a doctor might focus their portfolio on pharmaceutical and biomedical companies.
Others might choose to invest in their hobbies instead. Some video game enthusiasts own stocks of game publishers, while finance-savvy sports fans frequently buy into apparel companies that endorse their favorite athletes. After all, if there are people buying a product legally, there are hundreds of stocks available related to that product.
But what if you’re only interested in bar hopping, chain smoking, and frequenting gentlemen’s clubs?
Good news: you can actually invest in all of that! By buying “sin stocks,” you can potentially profit from the most desired and frowned-upon products and services on the market.
But should you invest in these stocks? Let’s find out.
“Sin stocks” are any stocks related to products that some people frown upon. This includes alcohol, tobacco, firearms, and strip clubs.
Yes, you can actually invest in strip clubs. No, this does not mean giving more money to strippers.
There are numerous beer companies listed on the world’s stock exchanges.
AB InBev ($BUD), for instance, is the biggest beer company in the world. They make Budweiser, Miller, and a whole bunch of other famous beer brands. If you want to invest in craft beers, you could buy stock in the Boston Beer Company ($SAM), makers of Sam Adams. The Craft Beer Alliance ($BREW) also trades on the Nasdaq.
You could also look at wine and sprit stocks while you’re at it.
Companies like Diageo ($DEO) and Brown-Forman ($BF.B) make some of the most popular brands of whiskey, vodka, tequila, and other liquors in the world. (For more information, read our primer on how to invest in whiskey.)
Millions of people in the world smoke cigarettes, and the companies selling them do pretty well for themselves.
Altria ($MO) is the parent company of Philip Morris USA, one of the biggest tobacco companies in the world. Philip Morris International ($PM) is a separate company, but still one of the leading tobacco producers. Universal Corp. ($UVV) is also a pretty big tobacco company, too.
Instead of blowing your money on slots, you can invest in the casinos themselves.
Wynn ($WYNN), MGM ($MGM), and Las Vegas Sands ($LVS) are just a few of the publicly traded casino stocks available on the market. You’ll have better luck investing in these companies than you would at any of their games.
Millions of people in America own guns — and millions of investors own gun stocks.
Publicly traded strip clubs are thing, too.
There aren’t a lot of them, but Rick’s Cabaret ($RICK) has over a dozen locations, including one not too far from our offices, and they always look busy. (No, we’ve never been. It’s not really our bag.)
Should you invest in sin stocks? That depends on the stock. If the stock has performed well in recent months/years and their earnings are positive or show promise, then you might want to do more research into them and consider buying them in the near future. If the stock has performed poorly and analysts predict lower profit, earnings per share, or revenue, then you might want to hold off on investing in that company.
Remember: investing in anything requires careful research into the company, their finances, and their outlook for the future. If you don’t make careful, calculated investments, you could end up losing money.