Does vice pay? It depends on where you look.
[buffett]
Indeed, there's plenty of evidence which shows that vice or sin stocks outperform the market (more on this later). Although, a recent study published in The Journal of Law and Financial Management, a publication of The University of Sydney, questions these results.
The study was conducted by Greg Richey, a lecturer of finance at California State University, San Bernardino who, in his own words was looking to determine, "how the individual vice industries have performed against the market portfolio".
Abstract:
"This article examines the return characteristics of a portfolio of US 'vice stocks', firms that manufacture and sell socially irresponsible products such as alcohol, tobacco, gaming services and national defense. First of all, I construct...Login required to continue reading.
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