Stock Market Video
Good Luck … Really!
The Greatest Glory is to Rise Every Time You Fail
In Case You Missed It
In this week's Stock Market Video, Mike Cintolo gave some
insight on how market's defensive sectors are beginning to
outperform, which is often a yellow light. However, he says it's
too soon to conclude anything, especially as the major indexes, as
well as most stocks and sectors, are still in firm uptrends ... and
he's starting to see a growing number of lower-risk set-ups as the
market has tightened up. Stocks mentioned include:
), LinkedIn (
), Cabot Oil & Gas (
), Range Resources (
), CBRE Group (
), ServiceNow (NOW)
and many others.
Click here to watch the video!
One Important Factor in Growth Investing
In his Tuesday Cabot Wealth Advisory, Mike Cintolo wrote a nice
piece addressing the most common questions that he fields as the
editor of Cabot Market Letter. I think his answers are thoughtful
and practical, but that's not really the most important message.
What's even better is that he highlights one of the most important
differences between Cabot and just about every other investment
advisory service I know. We answer questions.
We answer questions from our subscribers in emails and on the
phone. We talk to people who are thinking about subscribing to help
them figure out which publication is right for them. We have people
who call once and people who call every week.
Answering questions is a good thing because (as Mike points out)
it lets us know how people are feeling about the market and how
they're doing with their investments. It's also helpful because it
forces us to take responsibility for our stock selections.
Sometimes giving answers isn't comfortable, but I think it's
always useful. We're clear about our recommendations and we try to
be as frank about our losers as we are proud of our winners. And we
don't try to sugar-coat it when either the market, or one of our
stocks, goes south. Communication and responsibility … what a
But in our efforts to be responsive, I think we sometimes don't
give enough credit to one factor that has an enormous influence on
growth stock investing results, especially in the short-term.
You actually hear about luck all the time when you talk with
other stock investors. Someone will complain that they sold a stock
just before the company reported earnings and it popped up 38% the
very next day. And someone else will continue the "poor, poor
pitiful me" theme with a story about buying Apple at 700 (now
trading at around 440).
Many people will take this kind of thing personally, as evidence
that the universe (or the market) really has it in for them
And conversely, you've probably heard people bragging about how
they bought into the market in March 2009 or grabbed a piece of Nam
Tai Electronics below 5 last June and sold it at 10 just three
months later. Genius!
But the cold, hard fact is that anyone who plays in the market
is going to get rained on eventually. No stock goes up forever. No
market can act like a rocket or a lead weight for very long.
When I answer questions from subscribers to Cabot China &
Emerging Markets Report, conversations frequently start with the
phrase, "What happened to … ?" Sometimes it's a stock that has
taken a dive. Occasionally (my preference), it's a stock that's
acting like a homesick angel, soaring into the sky.
But in almost every case, both the breakdowns and the blastoffs,
there is an element of luck.
I work hard to get the odds in my subscribers' favor. I pick
companies with good stories and sound numbers. I check charts for
good buy points and pay attention to whether the market is
supportive or threatening.
And in the long run, it works. Right now, it's working with a
company called VIPshop Holdings (VIPS), a Chinese online retailer
that does flash sales of luxury fashion goods at discounted
And if I'm lucky, I will be able to advise my subscribers to
sell out somewhere near the top of VIPS's run.
But if I really get out of the stock at the top, there will
surely be an element of luck-not only skill-that does the trick.
It's not that I'm not that good; it's that nobody is.
The only people who consistently get in at the bottom and out at
the top are the liars. Just listen to them. They'll be happy to
The moral of this tale is that the only way to approach the
market as a growth investor is with both enthusiasm and caution.
Follow the rules. Put the odds in your favor. Do your homework. And
it's amazing how your luck will change.
Here's this week's Contrary Opinion Button. Remember, you can
always view all of the buttons by clicking here.
The Greatest Glory is to Rise Every Time You
It's been said by Clay Aiken, Nelson Mandela, Vince Lombardi and
Ralph Waldo Emerson, to name a few … and perhaps even by Confucius.
The full quote is usually "Our greatest glory is not in never
falling, but in rising every time we fall." In investing, what's
important is that you minimize the pain from your failures, and you
learn from them so that your failures grow less frequent and less
One of my favorite sayings from my days of following motorcycle
racing is, "If you never fall down, you're not going fast enough."
You don't have to fall … unless you really want to succeed. If
you're really bent on success, you should be prepared to hit the
pavement occasionally. Then get up and get going again.
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
Cabot Wealth Advisory 3/25/13 - Cyprus on the
In this issue, Tim Lutts of Cabot Stock of the Month looks at
the historical background of the Cyprus crisis. He also checks into
how you might find a place to stay on the island if you visited.
And this leads him to the Stock Discussed:
Cabot Wealth Advisory 3/26/13 - Your Investing
Mike Cintolo of Cabot Market Letter describes the Cabot approach
to questions we get from subscribers and prospective subscribers:
we actually answer them! Mike also talks selling rules and how to
deal with extended stocks. Stock Discussed:
Aruba Network (ARUN)
Cabot Wealth Advisory 3/28/13 - How to Buy Low
and Sell High
Value wizard Roy Ward, editor of Cabot Benjamin Graham Value
Letter, writes about how to get your attitude right to buy
undervalued stocks and sell them when they reach full valuation.
Corning (GLW) and Qualcomm (QCOM).
Have a great weekend,
Editor of Cabot China & Emerging Markets Report
and Cabot Wealth Advisory