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Daily Archives: December 21, 2010

My Year-End Thoughts

December 21, 2010
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Quite often, Elyse Andrews, the editor of Cabot Wealth Advisory, forwards your comments regarding what you like and what you don’t like about the Cabot Wealth Advisory. Your positive comments are encouraging and gratefully received. Many of you enjoy the commentary and find good use of the stock recommendations from our editors. Some of you are tired of ads begging you to subscribe to our investment letters. Unfortunately, the ads are necessary because we need your money to keep Cabot afloat. Full disclosure: I get paid by Cabot, and I need Cabot to keep sending a few dollars my...

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The Magic of Compound Interest

December 21, 2010
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Today’s topic is the Eighth Wonder of the World.  It’s the Magic of Compound Interest, and if you don’t know about it, you’ve absolutely got to keep reading. Simple interest is what you get when the 10% increase in value in your $1,000 investment brings you $100.  The increase in value can come from price appreciation, as with stocks, or it can come from dividends.  It doesn’t matter.  $1,000 brings you an additional $100 and that’s that. Compound interest is what you get when that $100 increase in value is kept in your account (untaxed), so that it, too,...

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