Stocking Up on Sin : How to Crush the Market with Vice-Based Investing

A one-of-a-kind guide to investing in vice industries Although vices such as alcohol, tobacco, and gambling may be deemed socially irresponsible, in the investment world, these stocks continue to dramatically outperform the S&P 500 in this depressed market. Stocking Up on Sin shows readers how to get in on this hot investment trend and make the most out of publicly traded companies that deal with "vice" products such as coffee, weapons, alcohol, and tobacco. Caroline Waxler (New York, NY) is a New York-based financial journalist. She contributes regularly to Worth and Glamour magazines as well as the Financial Times. She was also the ghostwriter for Worth's Greatest Stock Picks of All Time.

No matter what reservations you might have about companies whose stock and trade is sin—gambling, tobacco, weapons, and the like—there’s no denying it: "vice stocks" are hot.

Historically, investments related to human weaknesses have been a safe bet—no matter how the market is performing. Over the last five years, vice-based investments have outperformed the S&P 500, earning a forty-two percent return, compared with a negative return for the S&P.

Welcome to Wall Street vice...

In Stocking Up on Sin: How to Crush the Market with Vice-Based Investing, financial journalist Caroline Waxler reveals the unique potential of vice stocks for investors. With a down-to-earth tone, witty style, and an emphasis on doing your own research, she expertly profiles these common "sin-dustries":

• TOBACCO
  How the decline in U.S. litigation impacts your investing strategy
• GAMBLING
  Why it continues to be one of the most stable industries in the world
• WEAPONS/DEFENSE/WAR
  Why investing in the defense/weapons sector is an effective long-term strategy
• ALCOHOL
  How the nation’s zeal for health and fitness is reshaping the product lines of alcohol companies—and what this means for your portfolio
• SEX
  How the combination of technology and titillation is expanding this practically recession-proof industry
• DRUGS
  An insightful look at the booming market for treating sexual dysfunctions

Stocking Up on Sin also uncovers hidden stocks, or "vice in sheep’s clothing," proffered by retailers like Victoria’s Secret. Along the way, this just-in-time book shows you how to manage risk by looking at any vice stock through a historical context, as well as the prevailing political and legal climate. And, in addition to helpful appendices and a sample portfolio at the end, the chapters feature a wealth of case studies, lessons that offer savvy tips based on new market trends and legal issues, and "shopping bags" that list each industry’s major players.

Whether you already have vice stocks in your portfolio or you are a vice-investing "virgin," Stocking Up on Sin shows you just how much fun—and how profitable—this often-overlooked area of investing can be.

Fort Worth Star Telegram

Stocking Up on Sin is highly readable and informative. It is a strong candidate for the best business book of 2004.

Although vices such as alcohol, tobacco, and gambling may be deemed socially irresponsible, in the investment world, these stocks continue to dramatically outperform the S&P 500 in this depressed market. The fact is that these stocks have earned a 52. 96 percent rate of return over the past five years, compared to 11. 83 percent for the S&P 500.