Video with @Haley Draznin


I Loved the content because I have been reading and looking at Vice stocks before (MO, BTI, any oil company is considered "vice" by some, LMT, SWBI, AOUT). 
But none of those seems to have generated better returns than the overall market 🤷‍♂️ some even make you lose money. So to call it Recession-Proof ....
The facts don't seem to agree (see VICEX performance below). 

The fun thing for the vice stocks is that there is some pricing power and that the product is usually very addicting which tend to generate very sexy cashflows (think of the whole story of the Tabacco company in Barbarians at the gate book). 

I personally think this stuff should be called the "FUN fund" instead of a Vice fund. Change of perception might attract more capital? From what I understand Catherine is investing are the nicotine light products, Rum (alcohol), CBD sparkling water (LOL), Esports and sex toys. I mean that's all really mainstream no? I bet most of you have at least one of these products at home (Rum/sextoy)? 


It's been done Before
As an FYI There are a couple of other vice funds that exist out there based on public stocks. One that was in the news quite a bit is called VICEX. I think it might be the oldest one out there since it was launched in 2002, there have been quite a few PM's since. 
 

https://www.morningstar.com/funds/xnas/vicex/people

 


Anyway, it's good to see what their returns looked like:

VICEX Results:

 

The latest Prospectus that is out there one their website is from June 2019 ( a bad sign in my opinion). 

 

08-09 period was super brutal 2018 was trash.
08-09 period was super brutal 2018 was trash.
https://usamutuals.com/wp-content/uploads/2019/08/Vice-Fact-Sheet-2019-Q2V2.pdf


BTW another Vice fun fact porn hub is one of the most visited websites in the world and is privately held by a company called mind geek. I'm pretty sure its a money printing machine BRRRRRRRRRRRRRRRRRR. 
 

On Tabacco: 

Odd lots has a podcast episode out that goes deeper into the Tabacco Stonks:

https://podcasts.google.com/feed/aHR0cDovL2ZlZWRzLmJsb29tYmVyZy5mbS9CTE0yMDA5ODM3NDc3/episode/NDgxMDdlYzAtMGU1ZS0xMWViLTg4YzUtMDdkNDgzNjI2MTBi?sa=X&ved=0CAcQuIEEahcKEwjIhfHUmbbsAhUAAAAAHQAAAAAQAQ