Last week I shared some of my favorite bits of investing
wisdom with you and asked you to write in with your own favorite
pieces of investing advice. Today, I'm sharing some of the best
submissions with you. I hope you enjoy it and learn something!
And if you didn't send me your favorite investing quote yet,
please do so by replying to this email.
Baron Rothschild, an 18th century British nobleman and member of
the Rothschild banking family, is credited with saying that "The
time to buy is when there's blood in the streets."
"Buy when others are fearful, sell when others are greedy"-Warren
Buy the rumor, sell the news.
"The four most dangerous words in investing are 'This time it's
different.'"-Sir John Templeton
"Nothing is more difficult, I believe, than consistently and
fairly profiting on Wall Street. I know of nothing harder to
Baton Rouge, Louisiana
This takes at least 20 years to understand and about 10 minutes
Reminiscences of a Stock Operator
by Edwin Lefevre
"In a bull market your game is to buy and hold until you believe
that the bull market is near its end.
"To do this you must study general conditions and not tips or
special factors affecting individual stocks.
"'Disregarding the big swing and trying to jump in and out was
fatal to me. Nobody can catch all the fluctuations.'"
"It never was my thinking that made the big money for me.
It always was my sitting. Got that? My sitting tight!
"Men who can both be right and sit tight are uncommon. I
found it one of the hardest things to learn."
What he really meant to tell them was that the big money was not
in the individual fluctuations but in the main movements-that is,
not in reading the tape but in sizing up the entire market and
"Trends, like horses, are easier to ride in the direction
they are going."-John Naisbitt
"Risk comes from not knowing what you're doing."-Warren Buffett
"Change is inevitable, growth is intentional."-Anonymous
"Our best built certainties are but sand-houses and subject to
damage from any wind of doubt that blows"-Mark Twain
"In matters of style, swim with the current; in matters of
principle, stand like a rock."-Thomas Jefferson
"Markets test patience and reward conviction."
"In the field of observation, chance favors only the prepared
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Almost exactly one year ago, I recommended
Lululemon Athletica (
in Cabot Wealth Advisory for the first time. At the time, the
stock was not that well known and was trading around 44. Since
that first recommendation, we've written about the stock many
times here and in our other Cabot newsletters. It's also had a
big run, recently trading around 90. And we still like it! In
fact, Michael Cintolo recommended it recently in Cabot Top Ten
Trader, writing this:
"When Lululemon first started telling its story of yoga wear,
most pundits giggled--it smelled too much like just another fad
that would quickly fall by the wayside. What those naysayers
missed was that Lululemon was, first, very small (even today it
has just 137 stores, though it plans to increase that by a
whopping 30 by the end of 2011) and, second, it wasn't selling
yoga clothes as much as athletic, casual, fashionable wear for
women. It's been a huge hit, with revenues ramping at least 50%
each of the past five quarters while earnings clipped along at an
even faster pace. Recently, the company's only real problem has
been keeping up with demand; in its March 17 conference call,
management said that despite huge gains in comparable store sales
(up 28% in the latest quarter!), 'we believe there was unmet
demand across all product lines in our stores and e-commerce
channel.' Translation: Management has been too conservative, and
while there could be a short-term hiccup as they boost inventory
levels and re-launch their website, the long-term outlook is
"LULU broke out of a base-on-base last week-the first structure
lasted six weeks and led to a brief breakout in early February,
and the second also lasted six weeks, leading to last week's big
gain on the second heaviest weekly volume in the stock's history.
LULU has a history of being quite fidgety, with big short-term
moves up and down. We think you can buy a little here with a
loose stop around 81, but a brief dip
into the mid-80s isn't out of the question either."
You could buy LULU here and hope for the best or you could check
Cabot Top Ten Trader
to get Mike's latest recommendation on this and other leading
In this week's Stock Market Analysis Video, Cabot Top Ten Trader
Editor Mike Cintolo says the market has seen a little resistance
this week, but the Cabot market timing indicators are still
positive, so we're leaning bullish. Many investors are wondering
whether this is a double top, but no one can say for sure. Mike
advises you to stick to a system you have faith in. Stocks
), Weight Watchers (
), Molycorp (
), IntraLinks (
), Illumina (
Click here to watch the video.
Until next time,
Editor of Cabot Wealth Advisory