Investors urged to see financial virtues of 'vice'
Investors are being urged to see the financial virtues of vice.
A US firm has launched a "socially irresponsible" fund which targets alcohol, gambling, tobacco and defence stocks.
The Vice Fund has been set up by Dallas-based Mutuals.com, with the motto "when it's good it's very, very good... and when it's bad, it's better".
Investors using
vicefund.com are told: "It is our philosophy that although often considered politically incorrect, these and similar industries and products will continue to experience significant capital appreciation during good and bad markets.
"We consider these industries to be nearly recession-proof."
The fund plans to invest in fims such as Philip Morris, the company behind Marlboro cigarettes, and Harrah's Entertainment, the Las Vegas casino operator.
The Vice Fund quotes Abraham Lincoln as saying: "It has been my experience that folks who have no vices have very few virtues."
It says it's willing to bet that gambling will keep on growing, while alcohol stocks have held up well at a time when other shares are slumping.
The Vice Fund says the existence of Osama Bin Laden is a good reason to invest in defence stocks.
It adds: "Like other Vice stock industries, defence and weapons have been around for a long, long time. If you believe the Bible, it all started with Cain and Abel. We think this industry will be a good place to invest for a very long time."
Story filed: 11:26 Friday 16th August 2002
