Do you love smoking cigars and cigarettes? Do you gulp down beer, whiskey, rhum, gin, lambanog, ethyl, isopropyl, etc.?
Do you adore gambling and playing the games of poker, slots, baccarat, bingo, blackjack, roulettes? Then I suppose you would definitely invest in companies that sell these products and services. Or, would you?
We always remind new investors to take a deeper look into a company’s fundamentals before deciding to buy their shares. But I seldom hear these days to consider asking themselves first if the company they are interested in are actually producing either clean or “sin” products.
You wonder why our government won’t totally ban cigarettes and liquor despite the more harm than good that they offer? It’s simple. The government earns from taxes paid by these companies.
What Are The Listed Philippine Sin Stock Companies?
I tried to browse a few and found a very short list of “sin” stocks. You can add some more if I missed any of them.
PRC PHILIPPINE RACING CLUB
BEL BELLE CORP
LR LEISURE & RESORTS WORLD CO
BLOOM BLOOMBERRY RESORTS CORP
MJC MANILA JOCKEY CLUB INC
SMB SAN MIGUEL BREWERY INC
GSMI GINEBRA SAN MIGUEL, INC.
Should I include mining stocks? Hhmmm…
Why A Lot of Sin Stock Traders Love Sin Stock Companies
1) Because these sin stock companies produce and sell products that are sinfully desired by many people: cigarettes, beer, gambling. Next could be adult magazines and guns. Products that excite people. “Great” reasons to value these stocks.
2) Because these sin stock companies produce and sell products that people WANT to buy each and every single day. Cigarettes are not smoked once. Gamblers don’t just gamble for one night in Casino Filipino. Alcoholics don’t drink just one bottle of beer and become transformed into a clean Christian person in just one weeknight. They all have to be bought over and over again.
If a company’s products are consumed endlessly, investors won’t go away from them.
3) Because these sin stocks have loyal followers. Investors and traders are confident that buyers of these products will remain until they die.
4) Young people become adults. Millions of them become exposed to booze and cigarettes. They will never run out of consumers each year.
5) Even when the country’s economy is down, people with addiction to these vices will continue to buy these sin products. Regardless if the country’s economy falls apart or not, smokers will never stop smoking. Alcoholics will never stop drinking. Sin stock traders therefore will continue to buy and sell their shares and earn a lot from them.
6) As long as there are sinners, sin stocks will stay.
Are You An Upright Investor or An Investor with The Right to Choose?
When investors meet, most of the time they talk about how much their investments have earned in the past year. Or who has the bigger net gain.
But sometimes some investors won’t admit that they own companies that sell products that say “smoking is dangerous to your health”. Or firms that ask you to “drink moderately”. Our parents may be quite thankful FHM and Maxim magazines have not decided to be listed yet.
Should you really ignore sin stocks? Are you a socially responsible investor? Do you support companies that produce products and services that destroy health and families?
Really, it’s your conscience that will matter at the end of the (trading) day. Your call. To each his own.
But personally, I will only buy stocks of companies that benefit the general public and not only the few ones.
Read more about stock investing issues by subscribing to BurnGutierrez.Com for free.
Join the OFW UsapangPiso Facebook Group to learn how to plan your finances the right way and how to grow your money in various financial instruments and investment vehicles such as stocks, mutual funds, UITF’s, bonds, money market, real estate, and others.
Rock your way to abundance!
P.S. 1. Are you an OFW who’s been looking for a investment placement where your money could grow higher than your time deposit accounts? Are you outside of Metro Manila and would like to start investing in mutual funds but have no personal advisors to help you out? Click here so I can help you open a mutual fund account NOW! .
P.S. 2. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at email@example.com if you have any questions. Click here to join!
P.S. 3. My co-author/illustrator Des Feliciano and I have just launched our “The Adventures of Pepot Kuripot and Dora Gastadora” comic book! It’s arguably the first and only personal finance-influenced comic book in the Philippines. Order your copy now from our website http://pepotanddora.com and have it delivered right at your doorstep. Or you can grab your copy yourself at The Pantry at 07 in Makati City and ilovemilktea in Las Pinas City. Now available also in Australia, Saudi Arabia, and the USA! Email firstname.lastname@example.org for more details.
P.S. 4. If you are based abroad or just outside of Metro Manila and has been itching to learn more on how to jumpstart your business dreams, join me and my friend, serial entrepreneur Ginger Arboleda, as we take you through a series 2-hour webinars (for 11 Saturdays) that will help you focus on the technical skills and specific things that you have always wanted to know about in order to grow your business. We have come up with 10 sessions with 11 expert lecturers (with 1 FREE session if you enroll in the full program) that will make you a stronger and better entrepreneur. Register here to join the Enter Entrepreneurship Webinar Program now!
P.S. 5. Learn How To Make Money From Foreclosed Properties! We are on our 3rd run of the Usapang Foreclosed Property Investing with Jay Castillo of ForeclosurePhilippines.com! Happening on September 26, 2015 at the SMX Aura, Bonifacio Global City. Click here to register and avail the early bird promo!
P.S. 6. Buy insurance products online! Visit the very first online insurance store in the Philippines: the AXA iON! Purchase your alternative savings plan, educational plan for your children, medical emergency plan, and your life insurance by clicking HERE.
Photo credit: Neutronic