Tuesday, February 20, 2007

NaturalBlog Vice Index

I saw in the news last week that profit for Molson Coors was up a staggering 343 percent in the fourth quarter. That got me to thinking about the need for a mutual fund that trades in vices. I'm sure these exist, but I'm a do-it-yourselfer.

I'll keep it simple, tracking the value of one share of common stock in six firms that play to people's vices and seeing how I do percentage-wise versus the Standard & Poor's 500 Index.

On to the companies:
  • Beer: Molson Coors (NYSE:TAP). Hop on board the Silver Bullet train. They probably can't duplicate last quarter's profits, but I'm backing my college favorite, Coors Light. Price: 86.61.

  • Wine: Constellation Brands (NYSE:STZ). The world's second largest wine conglomerate, they distribute Mondavi wines, one of my favorite moderately priced California wine labels. Price: 24.01.

  • Caffeine: Starbucks (NASDAQ:SBUX). This one's a no brainer. The industry leader in the sale of legal stimulants. Price: 33.01.

  • Gambling: MGM Mirage (NYSE:MGM). The Las Vegas entertainment giant also allows me to get my fingers into Hollywood. Price: 68.97.

  • Tobacco: Reynolds American International (NYSE:RAI). This is the corporate parent of cigarette brands including Camel, Kool, Winston, Doral and Pall Mall. No vice fund is complete without tobacco. Price: 63.94.

  • Sex: Church & Dwight Co. (NYST:CHD). This firm makes a host of consumer products. I'm picking it because it owns the Trojan condom brand. It also owns First Response pregnancy tests, which I think is a funny pairing. Price: 47.34.
So there we are. Add up those prices and you get 323.88. So that's where the NaturalBlog Vice Index starts. For comparison's sake, the S-and-P is at 1,455.54 today.

Go VICE!

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1 Comments:

Anonymous Anonymous said...

Two holdings now or formerly of the Sebastian Dangerfield portfolio: NOOF and PRVT.

February 20, 2007  

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