When I talk stock market investing to family and friends the question that always comes up is what are the best stocks or companies to invest in. My response to this question surprises a lot of people, but I am just stating facts.
My response to the question:
Companies that sell products that are not necessarily good for us with regard to our health and well being are the best companies to invest in. This statement can be supported with tons of facts. So in a nutshell products and services that may not be good for you can be good to you….For investment purposes.
Now some people may get offended, but these are facts. Frankly, if you feel morally obligated not to profit from companies that sell products and services that may not necessarily be good for their customers in the long run, then do not invest in these companies.
When I was in college an organization that I was part of had a meeting with representatives from Phillip Morris who, by the way, are the makers of the #1 cigarette brand Marlboro. Now I asked one of the reps, “Why are you guys selling products that you know may hurt people in the long run?” The reps response was, “We produce and sell the best products to people who choose to use them.” The key point to take out from this response is “people who choose to use them.” Basically as consumers we have choices whether we want to use a product or not.
Now get this, Phillip Morris advertises against themselves and they are still making money hand over fist. Several political institutions, including the United States and the UK, have placed several advertising restrictions on the tobacco industry as a whole. The European Union recently passed a treaty that mandated tobacco companies must prominently display the effects of smoking on cigarette packages. In the USA, you commonly see commercials on TV sponsored by Phillip Morris that highlight the effects of smoking. In spite of that, cigarette companies are still making profits worldwide. Any company that advertises against itself and still makes money is insane but cigarette companies are proof that it can be done.
EU requirements cigarettes.
Okay so here is a short list of industries that are responsible for products and services that may not be good for you but good you…For investment purposes….
- Fast Food Industry – McDonald’s
- Liquor Industry – Coors, Budweiser
- Cigarette Industry – Phillip Morris
- Confectionery Industry (Candy) – Hershey’s, Nestle
- Soft Drink Beverage Industry – Coke, Pepsi
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