Sin stocks can be serious moneymakers. As a father and husband who would cringe if any of his family members started smoking, the Fool's Brian Stoffel says investing in cigarette companies doesn't sit right with him -- but he doesn't hold it against people who do.
And he's not the only one who thinks so. Castle Focus Fund (NASDAQMUTFUND:MOATX) has a mutual fund that simply invests in companies it believes have the largest moats -- or sustainable competitive advantages -- around them.
The fund is still relatively young, and not surprisingly for a value-focused approach, has underperformed the market since opening up in 2010. But when you look at how portfolio manager Robert Mark has done over the long run with a similar approach, his portfolio has returned 250% since 1999, versus the S&P 500's return of just 48%.
Not surprisingly, sin stocks are at the top of the list of Mark's investments. One cigarette company in particular, Phillip Morris International (NYSE:PM), has a pretty large allocation in Mark's fund. In the following video, Brian explains why the company is such an attractive choice for investors.
Brian Stoffel and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.