Added: 01/26/2006 |
Irresistible returns of unethical activitiesThe major question is how to get irresistible returns from sin products of nowadays. A good portion of your investment portfolio can consist of the motto "Drink, smoke, gamble and have sex", whatever happens in your life. Whether you celebrate anything, have stressful times or simply have a rest, you apply all the perfect four-in-hand of the above expression. So does the rest of the world. Companies, producing those products, in their turn, provide relatively stable returns to investors, both in good times and bad. Moreover, many sin stocks are renowned for providing consistent dividend payments and that is one more advantage for your investment.
Another topic for you to know is the way you would invest in unethical activities. Investment firms have even made it easier for you to both invest in sinful companies and get an instant diversification in the industry. Many companies nowadays create mutual funds you can use to invest along in products, considered unethical.
Today's investors have an access to the diversification and professional management within the tobacco, gambling, alcoholic, defense and sex industries. If investing means nothing more than finding companies that stand the test of time and make a lot of money for you, you would definitely stop at unethical activities. There would be not even a thought of taking part in such activities for a socially responsible investor, the opposition of sinful stocks. It is not that your portfolio should be comprised of only sinful stocks, but it is worth the consideration of holding a portion in a balanced portfolio. As in any industries, there will be firms that outperform the others and by no means all stocks, involved in these types of businesses, will be prosperous, you will still have to select the best ones among them.
As far as human weaknesses and desires for sinful pleasures are unlikely to disappear soon, your long-term outlook and seek for a little excitement will definitely bring irresistible returns to your portfolio. A great number of the companies in these industries with unethical activities have healthy profits and will continue to do so. Taking a step toward them, you will open great possibilities for yourself as well. Aren't solid gains your only and whole-hearted dream?
Cigarette smokers or frequent gamblers are very loyal customers. However, is it ethical to keep on taking gamblers' or alcoholics' money, even though they have serious problems? If you think it is not, you may prefer the alternative to unethical activities, Socially Responsible Investing or SRI. The advantages of this contrary position are, in their first turn, concern your ethical principles and clear conscience. Using your investment funds to impact the society positively will likely be a more pleasant way of investing for you.
SRI requires a delicate balance between making the right financial decisions for your portfolio, while applying the social criteria that matters to you, but the results will not keep you waiting. The first step in SRI is screening the position. If you object to tobacco, alcohol, gambling and firearms, your investments would exclude unethical activities, cooperating with tobacco companies, spirits manufacturers, casino operators and gun makers. Moreover, your investments would concern only those companies, which provide you with future financial gains due to the positive social implementation. Look around; are there any? Certainly, there are.
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