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Monthly Archives: May 2010

Lessons from Warren Buffett’s Progeny

May 15, 2010
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Lessons from Warren Buffett’s Progeny

You might think that the son of the world’s richest investor would be partying it up in some tropical locale while squandering the family fortune. But as it turns out, that’s not how Warren Buffett raised his children to behave. His son, musician Peter Buffett, is the author of the new book, “Life is What You Make It: Finding Your Own Path to Fulfillment,” detailing how he avoided becoming just another spoiled child with a very rich parent. Buffett has famously given away most of his billions to charity instead of his children, often lamenting the “silver dagger in...

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Stock Market Analysis Video

May 14, 2010
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“I really like the weekly video of stock market analysis. I hope this will be a regular feature going forward.”-R. Young, Walnut, California Thanks R. Young! The weekly video is going to be a regular feature, thanks to the overwhelming response from readers like you. Today, Cabot China & Emerging Markets Report Editor Paul Goodwin is going to discuss the market’s performance this week, including what happens when an index gets some bad data. Paul discusses the possible paths the market could take from here as well as some stocks he’s watching: China Biologic Products (CBPO), China Mobile (CHL)...

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Formulating an Investing Game Plan

May 14, 2010
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Formulating an Investing Game Plan

Given the scenario I laid out yesterday, your first logical question should be … “What would change your mind?” I would tend to think the market doesn’t need a new base-building phase if the major indexes rocketed back to new peaks, or got above their 50-day line and stayed there for four, five or six days.  For the record, I think this is a highly unusual outcome, but anything is possible in the stock market. As for the downside, if the number of new lows rose above 40 and stayed there, day in and day out, and the market’s...

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Lessons from a Student of the Market

May 13, 2010
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Lessons from a Student of the Market

Being a student of the stock market means one thing above all else:  I’ve studied and experienced enough market history to know what is normal, and what is abnormal, in the action of the market and individual stocks.  And it also means that, when some wacky market action drops in my lap, I have a knowledge base to refer to, often finding similarities between the current environment and some episodes of the past. However–and this is important–I focus solely on the market itself and Cabot’s market timing indicators, or the action of leading stocks.  I don’t care much about...

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Winning and Losing in the Insurance Game

May 13, 2010
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Winning and Losing in the Insurance Game

When the very first issue of Cabot Wealth Advisory was published, back on February 1, 2007, the lead article was about insurance.  Today I’ve decided to run it again, since we have so many more readers, and I believe strongly that the facts (and opinions) in the article are important for you to think about. I begin today with an anecdote about my father, Carlton Lutts, who landed a job as a building inspector for an insurance company soon after he received his degree in mechanical engineering. He didn’t stay long in the insurance business; he quickly found better...

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