NEW YORK, Dec. 5 (UPI) — Investors should not be squeamish when it comes to making money off smoking, drinking and gambling, a U.S. fund manager said.
“You have to get beyond the point of saying, ‘I don’t like this’ or ‘I don’t like that,'” said Jerry Sullivan, manager of the Vice Fund, USA Today reported Monday.
By the numbers, those sinful habits look recession-proof. So-called “vice” stocks doing well this year include tobacco companies Lorillard, Philip Morris and Altria, with stock values up 34 percent, 29 percent and 15 percent, respectively, the newspaper reported.
Two notable gambling companies, Wynn Resorts and Churchill Downs are beating the odds, both up 14 percent on the year, as is booze producer Diageo.
“Vice stocks are showing they are a necessary part of a diversified portfolio,” Sullivan said.
“These companies are not in the business of being liked. Investors do see them deliver profits and grow.”