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Monthly Archives: October 2009

Money Flows Where It’s Treated Best

October 26, 2009
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Money Flows Where It’s Treated Best

Walter Wriston (b. 1919, d. 2005) was a distinguished banker for most of his life.  He headed up Citibank/Citicorp from 1967 until 1984.  He chaired the Economic Policy Advisory Board from 1982 to 1989 and was reportedly offered the post of Secretary of the Treasury twice, but turned it down.  He was also an Eagle Scout and received the Presidential Medal of Freedom, but that’s not really relevant. Wriston was also something of a visionary about how the information revolution would change the world of business.  He started offering MasterCard to his customers in 1969, ultimately mailing out 20...

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The #1 Rule of Growth Stock Investing

October 24, 2009
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The #1 Rule of Growth Stock Investing

This month marks a special time for us at Cabot: The 39th anniversary of the first issue of Cabot Market Letter, our flagship newsletter. In honor of this anniversary, I interviewed Cabot’s publisher and president Timothy Lutts, and Cabot Market Letter’s current steward, Michael Cintolo. You can read the other interviews here and here. Enjoy! (Please send us your comments on the anniversary of Cabot Market Letter by commenting here. We’d love to hear from you!) 1.) What is your current market outlook? My current market outlook is generally bullish, although some corrective activity (a 5% to 10%-type market...

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CBD: Retailing Brazil

October 23, 2009
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CBD: Retailing Brazil

In hard times, people tighten their belts and curtail their buying.  But some product lines resist the urge for tightening, and groceries is one of them. My idea for today is called Companhia Brasileira de Distribuicao (CBD), which is the second largest retailer in Brazil, a giant chain of nearly 600 stores with about 66,000 employees.  The company operates a number of different chains that target different demographics, including Pao de Acucar (high-end supermarkets), CompreBem, Extra Perto and Sendas (value supermarkets), Extra (hypermarkets, which put all classes of merchandise under one roof), Extra-Eletro (electronics and home appliances) and Extra...

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What’s A Femtocell?

October 22, 2009
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What’s A Femtocell?

Short-term, I’m a little leery that Dow 10,000 marks a temporary high-water mark. A little profit taking up here is probably not a bad idea. But long-term, I remain quite bullish, and not just because the folks at the Contrary Opinion Forum were bearish. No, the main reason for my bullishness is the charts, which remain in strong uptrends. The second reason is that the number of stocks hitting new lows remains minuscule, and that’s an indicator that we value highly. Adding to that is the Advance-Decline Line, which is healthy as a horse. More generally, I remain bullish...

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My Thoughts on the Contrary Opinion Forum

October 21, 2009
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My Thoughts on the Contrary Opinion Forum

Today I want to discuss contrary investing, the practice of paying attention to the sentiment of the masses … and leaning the other way. Twenty-three years ago, I attended my first Contrary Opinion Forum, an annual gathering of independent-minded investors (both individuals and professionals) in Vergennes, Vermont.  I was one of the youngest people in the room, and I took copious notes, intent on capturing the wisdom from the white-haired veterans who spoke. I’ve returned every year since, with the exception of one, and now some of my own hairs are white. More important, I now know that those...

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