Risk

Vice exposure carries real portfolio risk.

Vice businesses can be durable and still dangerous. Business risk, policy risk, market risk, debt risk, and evidence risk stay visible.

Vice industries: Tobacco and nicotine, Alcoholic beverages, Casinos, online gambling, and sports betting, Cannabis, Firearms and ammunition, Defense contractors, Private prisons and detention services, Oil, gas, coal, and mining, Data brokers and surveillance technology, Payday lending and high-cost consumer finance, Adult entertainment, Addictive platforms, Fast food, snack foods, and sugary beverages.

Details

  1. Business risk

    Revenue can weaken, debt can bite, suppliers can change, and lawsuits can get expensive.

  2. Policy risk

    Taxes, bans, licenses, product rules, and enforcement can change economics quickly.

  3. Market risk

    Thin trading, wide spreads, price gaps, and crowded ownership can damage the trade.