Blog Archives

Learn How to Invest the Cabot Way

March 24, 2012
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I can’t draw. Even my stick figures are so terrible that I long ago figured there was no point in me attempting to improve in the visual arts. So it was a bit surprising that, in 2007, The Eagle Tribune Publishing Company hired me as a copy editor/page designer. The editing half was easy enough, seeing as getting a degree in journalism forced me to become a good editor. However, the design half was an immense struggle to wrap my brain around because, as I said, I don’t have a talent for the visual arts. It took about four...

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Trust, But Verify

March 17, 2012
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Earlier this week, a Goldman Sachs employee named Greg Smith, an executive director in the London office, quit the firm in spectacular fashion–a scathing op-ed in The New York Times on Wednesday morning. More than a dozen major media organizations ran with the story, including Fox Business, Forbes, The Wall Street Journal and The San Francisco Chronicle among others. Smith aired a number of grievances in his article, chief among these the decline of corporate culture at Goldman. He wrote about managing directors calling their clients “muppets” in internal emails (“muppet” is slang for stupid person) and junior staffers caring more about making money than...

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Markets are Never Wrong, Opinions Are

March 9, 2012
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Markets are Never Wrong, Opinions Are

A brief tour down recent news headlines offers a disturbing picture of the stock market. Recession fears in the Eurozone, the decrease in China’s estimated gross domestic product growth for this year and a domestic unemployment figure that’s still too high for comfort are only a few reasons that people refuse to put their money in growth stocks. After spending several hours looking at the doom-and-gloom news stories this week, I’m reminded of a quote from Jesse L. Livermore: “Markets are never wrong, opinions are.” You’ll notice that’s also the title of this essay, and with good reason. Livermore...

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Ignore Emerging Markets at Your Peril

March 3, 2012
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We live in a highly interconnected world. Case in point is the ongoing discussion in the news of what would happen should Iran’s oil shipments to the United States cease. If you need another example, simply look on the tag on your shirt. I be buy cheap cialis t it says something like “Made in China” or another foreign country. Even the fresh fruit in grocery stores sometimes comes from Ecuador, Brazil or other nations where the growing season is opposite the United States. This interconnected nature of our world makes it all the more surprising to see the...

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A Little Education Goes a Long Way

February 25, 2012
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In the 2008 book “Outliers: The Story of Success,” author Malcom Gladwell theorizes that it takes 10,000 hours of practice in order to become a master at a task. This applies to anything, whether it’s playing the piano, cooking, writing novels or even investing in the stock market. If you were to actively embark on this “10,000-Hour Rule,” you would need to carve out four hours of practice time, every day, for slightly less than seven years. That’s four hours each and every day, without breaks, for three-quarters of a decade. Want to become an expert at the stock...

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