Stock Market Video
Getting to the Fun Part of Growth Investing
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 http://dilbert.com).
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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10 More Teslas Set to Jump Next Week
30% to 50% Profits Ahead: Join Now!
If you missed getting in on the ground floor of Tesla, don’t beat yourself up. In this week's Cabot Top Ten Trader, we’ve identified 10 new trades that could hand you Tesla-like profits and then some. But you’ll need to act quick as all of them are at the tipping points of breakouts and could double or even triple your money in the blink of an eye!
Here’s the full story and why I urge you to grab tonight's Cabot Top Ten Trades before they break out.
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 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).
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).
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).
Chief Analyst of Cabot China & Emerging Markets Report
And Editor of Cabot Wealth Advisory