Forgive me, Father, for I have sinned. I invested in a sin company, specifically the Big Tobacco.
Over the path month, I have been researching consumer goods companies. Initially, I believed I was going to invest in a recession-proof company like Procter & Gamble (PG) or Clorox (CLX). Not even close. I'm going to be a bad boy, set aside the social responsibility consequences, and invest in a sin stock. As Gordon Gekko said in the famous "Wall Street" movie, "greed is good."
The addictive nature of cigarettes helps make its sales insensitive to a rise in the product price, stricter regulations, or a recession. In other words, the inelastic nature of cigarettes helps the Big Tobacco companies maintain relatively stable earnings.
