Getting to the Fun Part of Growth Investing


Stock Market Video 

Getting to the Fun Part of Growth Investing 

Fortune Cookie 

In Case You Missed It


In this week’s Stock Market Video, Mike Cintolo discusses his still-bullish outlook on the market, though he does highlight a couple of flies in the ointment that need watching. He also talks about the liquid growth leaders in the market, which he sees as the proper foundation of your portfolio (as opposed to a bunch of overly speculative stocks). Click below to watch the video.


Getting to the Fun Part of Growth Investing

During my years as a Cabot analyst and editor of Cabot Wealth Advisory, I’ve written about hundreds of subjects, most of them related to stock investing in one way or another. I’ve looked at how to get started, chart reading, fundamentals, story stocks, sell disciplines, market timing, bull and bear trends and the traps that markets set for unwary investors.

But through all of them, the underlying message has always been that growth investing—the style I know best and the one I practice myself—is a worthwhile, intellectually stimulating, potentially profitable and (very important to me) a fun thing to do.

I have friends who look at me as if I’d just grown a third ear in the middle of my forehead when I say it, but growth stock investing engages me at every level. I’m even convinced that it’s the kind of brain exercise that people pay money to purchase from “mental calisthenics” sites.

Part of the enjoyment in growth investing is doing something that so many experts say can’t be done.

For the past week, the Dilbert comic strip has been running a series showing the pointy-headed boss instructing the intern, Asok, about the correct way to buy individual stocks. (The strips ran from Monday, February 23 through Thursday, February 26, and you can find them at

You might be asking yourself why I’m drawing attention to a message in a popular comic strip that’s so emphatically negative about my favorite style of stock investing.

And all I can say is that Scott Adams has done a beautiful job of summarizing everything novice growth investors do that make them lose money. Monday’s strip satirizes the use of chart reading (he calls it “technical analysis”). Tuesday mocks the idea that “doing your own stock research” can give you any advantage over the other researchers looking at the same information. Wednesday makes fun of over-enthusiasm resulting from short-term gains. And Thursday takes a swipe at mutual fund companies and their repeated disclaimer that “past performance is not an indication of future returns.”

What I have to say about this is that someone who comes to growth investing with the ignorant enthusiasm of Scott Adams’ characters will probably experience exactly what the characters do. The Pointy Headed Boss and Asok are bringing a knife to a gun fight.

Like almost any activity worth doing, growth investing requires a certain amount of study and practice to get right. In fact, a majority of the articles I’ve written for Cabot Wealth Advisory have been warnings about the pitfalls of stock investing and how to avoid them.

But Cabot has stayed in business for 44 years by helping investors avoid the market’s wiles and profit from its opportunities. We not only give you a gun to take to the gunfight, we partner up and come right along with you.

I said growth investing was fun. I didn’t say it was easy. And having a trusted partner to show you the ropes, teach you the perils and point you toward winning strategies and stocks can let you concentrate on the fun part. 

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Here’s this week’s Fortune Cookie. Remember, you can always view all previous Fortune Cookies here and Contrary Opinion buttons here.

Tim’s Comment: Successful people sometimes grow more accomplished after their death, and this may be the case here; there’s no proof Lincoln was the author of this riff on “All things come to him who waits.” On the surface, it’s hard to argue against the spirit of action, but after thinking about it, especially as it pertains to the investing world, I can say this. Those who hustle tend to be short-term traders, while those who prefer to wait tend to be long-term investors, often oriented around value—and both approaches can work very well when properly practiced.

Paul’s Comment: I read a story years ago about a successful investor who showed up very early every morning at the plant that published the Wall Street Journal just as the first copies were coming off the presses. He read it, cover-to-cover, while he was being driven to work, then put in his orders for the day based on what he read. That kind of hustle isn’t really possible in the Internet age, but the principle of working harder at success than your competitors is a sound one.


In case you didn’t get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, there are links below to each issue.

Cabot Wealth Advisory 2/23/15 – A Question for You

Cabot Stock of the Month Chief Analyst Tim Lutts, who just finished his series of “10 Revolutionary Stocks,” wants to know if you’ve bought any of them. He has a survey about the 10 stocks that he’d like you to answer. [link here] Tim also says it’s a bull market. Stock discussed: Regeneron Pharmaceuticals (REGN).

Cabot Wealth Advisory 2/24/15 – A Chinese Stock with Excellent Prospects

In this issue, I complain a bit about New England weather and talk about how to handle the transition from winter to summer, and from a bear market to a bull market. Timing is the key. Stock discussed: NetEase (NTES).

Cabot Wealth Advisory 2/26/15 – What Nasdaq at 5,000 Means

Mike Cintolo, the resident genius behind Cabot Market Letter, writes in this issue about the long view of market movements and why nothing is like it was 15 years ago. Stock discussed: Twitter (TWTR).


Paul Goodwin
Chief Analyst of Cabot China & Emerging Markets Report
And Editor of Cabot Wealth Advisory

Paul Goodwin can be found on Google Plus.

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

Cabot Wealth Advisory

Nine Characteristics of Great Growth Stocks

By Timothy Lutts on October 24, 2016

Recommending great growth stocks is our specialty at Cabot. But so is education--we want you to be able to find growth stocks on your own too. Here are nine characteristics of what to look for.Read More >

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >

Buy This Small-Cap Tech Stock as the Nasdaq Thrives

By Tyler Laundon on October 20, 2016

Technology stocks are thriving, as the Nasdaq has been outpacing the S&P 500 and the Dow for months. And one small-cap tech stock in particular is outperforming the industry’s big boys. Read More >