tag:blogger.com,1999:blog-3584696203336871201.post5826380804804906157..comments2009-02-20T13:52:17.253-08:00Dividend Growth Investorhttp://www.blogger.com/profile/11197290990687067072noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3584696203336871201.post-75676642307397962952009-02-20T13:52:00.000-08:002009-02-20T13:52:00.000-08:00DS,<BR/><BR/>If you invest in tobacco or alcohol stocks, your risks will be lower. People tend to drink and smoke more during a recession.Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-37516208038500597812009-02-19T13:45:00.000-08:002009-02-19T13:45:00.000-08:00The market is so crazy right now, I don't think I want to take anymore risks!do shotshttp://doshots.comnoreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-14635590270058670012009-02-06T01:31:00.000-08:002009-02-06T01:31:00.000-08:00DF,<BR/><BR/>You have summarized well the reason why tobacco stocks have outperformed in the long run.Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-67042465311910518602009-02-05T15:07:00.000-08:002009-02-05T15:07:00.000-08:00Great background on tobacco stocks. I think the risk of complete insolvency due to litigation is primarily what's made these stocks such great investments over the years. The mere fear of this eventuality has consistently scared a majority of investors away (as well as the now infamous "socially responsible" investment funds), allowing for an above market-yield for given risk. On this basis, investors that are long term holders are rewarded with what's essentially a high yield bond at rates high enough that they'd usually have to incur significant risk elsewhere to achieve.<BR/><BR/>Disclosure: Long VGR - same sector.Darwin's Financehttp://darwinsfinance.comnoreply@blogger.com