7 Sinful Stocks Buffett Would Love

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There are two certainties in life: death and taxes. But, there's another that gets 99% of the way there: Humans will always have vices. They will pay to maintain those vices in good times and bad and that makes companies that feed on human vices potentially great investments.

We went through the top 25 holdings of the VICEX mutual fund and picked 7 sinful stocks that should prove the test of time. These are stocks that have enjoyed large net and gross margins over the past 10 years and fit into the typical Buffett-style investment. These are also stocks that are looked upon favourably by the Motley Fool CAPS Community and Wall Street in general.

Here are the sinful stocks. Do you think these VICE stocks are worth their weight in gold or are only as good as their moral implications?

1. Lorillard Inc. (LO)

LO manufactures and sells cigarettes in the United States. Out of 373 ratings from Motley Fool's CAPS community, 355 (95%) are bullish. The average analyst target price is $140.22, according to MarketWatch. Vuru's Growth Price pegs the fair value at a controversial $50.60. LO is currently trading at $130.73 with a market cap of $16.87B and a dividend yield of over 4%.

2. Wynn Resorts (WYNN)

WYNN develops, owns and operates destination casino resorts. Out of 1246 ratings from Motley Fool's CAPS community, 896 (72%) are bullish. The average analyst target price is $147.76, according to MarketWatch. Vuru's Growth Price pegs the fair value at $74.80. WYNN is currently trading at $116.49 with a market cap of $14.47B and a dividend yield of 1.26%.

3. Altria Group (MO)

MO manufactures and sells, cigarettes, smokeless products and wine in the U.S. and internationally. Out of 8931 ratings from Motley Fool's CAPS community, 8,613 (96%) are bullish. The average analyst target price is $32.55, according to MarketWatch. Vuru's Growth Price pegs the fair value at a third of that at $8.23. MO is currently trading at $31.64 with a market cap of $64.73B and a dividend yield of around 5%.

4. Philip Morris International (PM)

PM manufactures and sells cigarettes and other tobacco products outside of the U.S. Out of 2,866 ratings from Motley Fool's CAPS community, 2,808 (98%) are bullish. The average analyst target price is $91.01, according to MarketWatch. Vuru's Growth Price pegs the fair value at two-thirds of that at $58.70. PM is currently trading at $86.39 with a market cap of $147B and a dividend yield of around 3%.

5. British American Tobacco (BTI)

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BTI manufactures, distributes and sells tobacco products. Out of 263 ratings from Motley Fool's CAPS community, 248 (94%) are bullish. The average analyst target price is $110.83, according to MarketWatch. Vuru's Growth Price pegs the fair value at $88.75, 10% below its current price. BTI is currently trading at $100.59 with a market cap of $98B and a dividend yield of around 4%.

6. Diageo PLC (DEO)

DEO produces, distills, brews, bottles, packages, distributes, develops and markets spirits, beer and wine products. Out of 2,445 ratings from Motley Fool's CAPS community, 2,395 (98%) are bullish. The average analyst target price is $105.43, according to MarketWatch. Vuru's Growth Price pegs the fair value at $52.83, 50% below its current price. DEO is currently trading at $100.28 with a market cap of $62B and a dividend yield of around 2.5%.

7. Anheuser-Busch InBev (BUD)

BUD brews and sells beer in North America, Latin America, Europe and the Asia Pacific. Out of 245 ratings from Motley Fool's CAPS community, 221 (90%) are bullish. The average analyst target price is $57.93, according to MarketWatch. Vuru's Growth Price pegs the fair value at $75.43, 5% above its current price. BUD is currently trading at $71.48 with a market cap of $114B and a dividend yield of around 2%.

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