Hello Community,
Today I would like to introduce you to a stock category that should divide opinion. We're talking about so-called "sin stocks".
While many focus on ESG, sustainability and the like, there are also investors who look for the exact opposite. I am one of them.
Some people know sin stocks classically from the areas of alcohol, tobacco and gambling. I would like to make it a little more interesting and expand the sin area.
To do this, I'm using the 7 deadly sins of mankind and would like to present some stocks that (can) go hand in hand with them: Pride, Avarice, Lust, Envy, Gluttony, Wrath and Sloth.
First of all, I would like to avoid moral discussions if possible. If you are already catching your breath, please skip this article.
Sin 1: Pride.
He who is to perish first becomes proud, and pride comes before a fall
This includes companies that are active in the luxury segment. For example $RMS (+0,09 %) , $RACE (+0,13 %) or the very popular $MC (+0,1 %). In my view, what makes them interesting is that the more luxurious they are, the less dependent they are on the economy. The super-rich hardly mind if there is an economic crisis. They can also achieve exorbitant margins, as the pricing has to correspond to luxury.
Sin 2: Greed
Because greed is the root of all evil
Greed stocks include the financial sector and its shares. For example $JPM (+0,25 %) or $DBK (+0,09 %) but also commodity companies such as $XOM (+0,45 %)
To be honest, I am less familiar with this sector than with other sectors - the financial industry is generally less interesting due to its lack of transparency.
I find commodity companies more interesting - perhaps even more so "suppliers" such as $NE (-0,09 %) which count as manufacturers of drilling rigs.
Sin 3: Lust
I don't have any shares in this portfolio myself. For a long time I flirted with $RICK (+0 %) They are active in the "adult entertainment" sector and run strip clubs. They also run restaurants ("bombshells") where the waitresses' work clothes are made of very little material. However, these bombshells are not that attractive from my point of view, which is why I didn't get involved.
You can certainly also include apps like $GRND can certainly be included here.
Do you have / do you know of any stocks that you would classify here?
Sin 4: Envy
In this category you can put cosmetics stocks like $OR (+0,1 %) or social media stocks like $META (+0,95 %) can be counted in this category. My portfolio is also underrepresented here.
Sin 5: Gluttony
Binge drinking and gluttony characterize people who are lost
The classic among the sin stocks. These can include alcohol companies such as $DGE (+0,24 %) tobacco companies like $PM (+0,76 %) or fast food companies like $MCD (+0,15 %)
Even more blatant would be something like $TSN (-0,61 %) as a meat producer.
As tobacco or alcohol (can) be addictive, there is a strong lock-in effect. This is probably why many investors steer clear of such shares.
I see $MNST (+0,49 %) as one of the most exciting gluttony stocks. As manufacturers of energy drinks, they remind me a little of tobacco companies, but they are hardly regulated and can advertise freely. Strong growth of the market - and the share.
Sin 6: Anger
The second classic. All stocks in the defense industry can be counted under wrath. A few years ago, they were frowned upon from an ESG perspective, but they are now almost back in vogue. $LMT (+0,25 %) , $RTX (+0,58 %) or $RHM (+0,16 %) should be familiar to most people. They are heavily dependent on government orders and therefore political decisions. However, the trend over the next few years should be upwards.
In my view, an exciting "Zorn" share is $AXON (+1,84 %) . This is a supplier to the police, primarily in the USA. For example with bodycams or tasers. I was on the verge of getting in at 90$ - and unfortunately missed it.
Sin 7: Sloth
Don't be lazy when it comes to being diligent
Companies that contribute to inactivity or passivity could be categorized here. First and foremost the gambling industry. I see the most exciting value here in $EVO (+0,1 %). One of the stocks with the highest weighting in my portfolio. It is a "supplier" for online casinos. The growth is enormous - the gaming industry is still very much analog. However, the online segment is growing at double-digit rates per year - as is Evolution Gaming. Plus a nice dividend.
Otherwise, you can also make use of various stationary casino operators.
That was my ride through the Sin Stocks.
I would now like to know what exciting sin stocks you have.
And also whether you see any other sin stocks.
By the way, I had the prison operator in my head the whole time $GEO (+0,19 %) in my head the whole time - it seems to me to be the final stop for many sins.