When it comes to controversial investment categories, few sectors raise as many eyebrows as the private-prison industry. Technically and euphemistically, the entities under this label are known as rehabilitation centers or whatever sanitary language is conjured up. But don’t fool yourself – Geo Group (GEO) is very much a for-profit enterprise, raising significant moral questions.
To be sure, people who break the law must pay the consequences of their crimes; otherwise, a lack of deterrence would likely cause society to spiral out of control. At the same time, incarcerated individuals must serve their time to the state or federal government. Where an entity like GEO stock walks on thin moral ice is whether shareholders should benefit from the underlying service.
