Stock Market Video
The Best Investing Resolution for 2014
This Week's Fortune Cookie
In Case You Missed It
In this week's Stock Market Video, Mike Cintolo gives some
timely advice on how to read the action in late December and
early January (hint: expect lots of crosscurrents). But he's
seeing more growth stocks, many of which have been consolidating
since October, setting up for potential breakouts. Mike also
discusses a few stocks he's eyeing for new buying if things go
according to plan.
The Best Investing Resolution for 2014
Let me be blunt: New Year's resolutions are mostly a bunch of
crap. They're the Chihuahua of your intentions barking at the
Great Dane of your habits. They're usually more of a wish that
something would happen than a firm resolve to make it happen.
And why is that?
First, change is painful. We do the things we do because our
character, our experience and our surroundings push us in a
particular direction. And in order to change, we have to step
outside ourselves, get off the worn path and leave old habits
But habits have a way of protecting themselves. They're
comforting and rewarding in very attractive ways. In a stressful
world, our habits offer us easy choices with little or no
thinking. And that's leaving out the resentment we feel when
(heaven forbid!) someone else (!) suggests that we might benefit
from a change. We can even become attached to our bad habits,
proud even. After all, they make us who we are!
And since everything we do is connected to everything else,
changing one thing often requires changing everything around it.
Going to the gym means giving up whatever you were previously
using that time for. Taking up carrots as an afternoon snack
requires leaving the pleasure of the Snickers bar behind. And on
Plus, of course, your friends are always to drop a little
chocolate on your desk when they see you reach for the baggie of
veggies. Change (yours) is painful for them too.
An even bigger obstacle to change is that most of us don't
know how to keep our resolutions under control once we get
started. We're always tempted to shoot for weight loss, plus an
exercise program, plus spending less money, and on and on. As
long as the change is just on paper, why not shoot for the
My whole point is that actually changing something you do is
no walk in the park, even if your resolution is to take more
walks in the park.
My solution is simple. First, identify the habit you want to
change and the new path you want to take as accurately as
Since writing about growth investing is my thing, I'd suggest
a quick review of your results from 2013. Did you buy stocks
without enough research? Hold on to your losers too long? Sell
out for smaller profits than you might have had? Pay too much
attention to talking heads on TV? Own too few stocks, or too
many? Or just couldn't pull the trigger on either buys or
Once you know what the one behavior is that you'd like to
change in 2014, make your plan.
This next part is important! Be sure that your plan
incorporates the smallest possible change that will get you to
your goal. If your planned change is going to require you to
change who you fundamentally are, it's not likely to happen. The
only people who experience major life changes are usually either
victims of catastrophes or those who have bottomed out from their
bad habits. And you don't want either of those to happen.
So keep it small and keep it simple. Better to take on one
small change you can actually stick to than a major life overhaul
that will have you back on the couch eating Cheetos in two
And, not to be too obvious about it, if you want a source for
actionable, profitable growth stock recommendations, Cabot has
Click here for details.
Good luck in 2014, whatever changes you decide to make. If you
have any topics you'd like me to cover in future Weekend CWAs,
I'd love to hear from you.
Here's this week's Fortune Cookie. Remember, you can always
view all of previous Fortune Cookies
and Contrary Opinion buttons
Humans, like all animals, are creatures of habit, and the older
we get, the harder it is to break old habits and form new ones.
Yet if you want to become a better investor, that is what you
must do. My best suggestion is borrowed from Mike Cintolo.
Periodically (year-end is a great time) review your trades of the
past period. Determine your most common mistakes and then take
steps to minimize them in the future.
Albert Einstein was a very smart guy, with a quirky sense of
humor. I'm not sure that he really defined insanity this way-it's
a big temptation to hook a clever quote to the biggest plausible
name, regardless of its correctness-but it has the kind of
twinkle that Einstein frequently brought to his public musings.
The lesson for investing is obvious, especially as a New Year
begins. If you're not getting the results you want, change your
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 12/30/13-Best Disruptive
Cabot Stock of the Month
helmsman Tim Lutts writes in this issue about the constant (and
contradictory) news about health research. Tim also gives the
first of his series of disruptive stock picks. Stock discussed:
Spirit Airlines (
Cabot Wealth Advisory 12/31/13-My Favorite
Stock in the Natural Gas Group
Mike Cintolo, the man behind
Cabot Market Letter
, writes about one aspect of tax planning for the New Year,
factoring in short-term capital gains taxes to help reduce your
total tax liability. Stock discussed: Cabot Oil & Gas (
Cabot Wealth Advisory 1/2/13-5 Outstanding
Stocks for 2014
Our value expert Roy Ward of
Cabot Benjamin Graham Value Investor
tells us where he sees the market heading in 2014. He also names
three more stocks that he thinks are well positioned for solid
gains in 2014. Stocks discussed: Ensco (
), Lear Corp. (
) and Questcor Pharmaceuticals (QCOR).