Tobacco stocks: You got a problem with that?
Tobacco stocks are like the movie "Indecent Proposal": A million dollars to do something that some, perhaps even you, find morally objectionable. Worth it? As Redford's character says: "Think of it. A lifetime of security... for one night." Tweet
What're your principles worth?
Can you put a price on virtue?
Ask Demi Moore.
In 1993 Demi Moore, Woody Harrelson and Robert Redford starred in the blockbuster movie Indecent Proposal.
You probably already know the plot:
- Redford is a billionaire
- Moore and Harrelson are young couple who are down on their luck and about to run out of money
- Redford’s character offers them $1 million if he can spend one night with Demi Moore’s character.
As Redford’s character puts it:
A million dollars. The night would come and go but the money could last a lifetime. Think of it. A million dollars. A lifetime of security… for one night.
What would you do?
The problem with this scenario is, there’s no answer that’s right for everyone.
You might be okay with this million-dollar scenario. I might not.
It turns out the same is true about tobacco stocks.
According to Motley Fool:
The tobacco industry produced some of the 20th century’s best performing stocks.
According to CNN, if you invested $1 in Altria in 1968, you would have had $6,638 in 2015. We did the math and determined that if you had invested $151 dollars in Altria in 1968 you would have had a million dollars in 2015.
With numbers like those, tobacco stocks start to feel like an Indecent Proposal.
Because even if you think tobacco is dirty and evil, there’s always this:
Think of it. A million dollars. A lifetime of security…