Kevin Duffy on investing in despised industries

Defending the undefendable may make us better humans, but will it make us better investors?  Will we find value rummaging through the garbage bin of corporate lowlifes?  I believe these stocks are not cheap simply because they are hated.  These are often durable, profitable businesses, in large part because social stigma acts as a barrier to entry.  The industries in which they operate exist for good reason, though not always apparent to their detractors.  Identifying the benefits of these pariahs to society may require a bit of effort and imagination.

~ Kevin Duffy, "Investing in the Undefendable," The Coffee Can Portfolio, September 5, 2023