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Growth Investing

My Favorite Stock

May 14, 2012
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My Favorite Stock

Last week a lot of people lost money in the market; most of them are wishing they had lost less. But most investors have no idea how to do that except by investing more conservatively—and that’s counterproductive if your main goal is growth. Today’s column, therefore, is dedicated to addressing ways to improve your investing system—without giving up the potential for growth. Practice Market Timing Academics will tell you it can’t be done—but they’re wrong.   We’ve been doing it for more than 40 years, and the proof that it works is that Hulbert Digest, which tracks the performance of...

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Voluntary Extinction Society Vs. Cryonics

April 30, 2012
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Voluntary Extinction Society?!!! My thoughts exactly, when I first saw the entry in Wikipedia. But why was I reading about it in the first place? Well, sometimes—when I’m in the mood to learn something new—I hit Wikipedia’s “Random article” button. Frequently I have to hit the button several times before something interesting comes up; I don’t really care about English footballers, distant galaxies or obscure German heavy metal bands. But eventually, I always find something interesting. So, assuming you’re as unfamiliar with the Voluntary Human Extinction Movement as I was, I’ll give you a brief look at the movement...

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What I Really Think About Investing in Apple

April 19, 2012
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In response to my Monday travelogue on driving through Austria and Slovenia to Venice, a reader from McAllen, Texas, wrote the following. “I have been a long time subscriber of the various Cabot wealth letters and have always enjoyed and profited from them. I have especially enjoyed reading your ‘non-investment’ comments, like today’s about your travels and vacations. “Which brings me to my question. I am traveling to Spain for my 60th birthday leaving on the 24th of April and returning on the 20th of May. My wife and I will be renting a car with Hertz, we will...

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The Conservative Aggressive Investor

April 12, 2012
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After the sharp decline that we’ve seen recently in the market, it’s inevitable that most investors feel blindsided by the market—the speed of the decline, and in particular in leading stocks, can make your head spin. And the fears fueled by these declines mean many investors who want to invest in potentially big-winning stocks find themselves scared out of most winners.  So, today, I want to talk about an investment style that I’ve been thinking about for a while—I call it the Conservative Aggressive style. To explain it, let’s consider two systems, the first of which gains, say, 18%...

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How to Invest in Growth Stocks

March 26, 2012
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Two weeks ago in this space I recommended five restaurant stocks. I hope you bought some. I’m fairly confident most will be higher in the months ahead. But I know some of you didn’t buy any, and that’s fine if you have a good reason… perhaps you already have a restaurant stock or two, or perhaps you’re fully invested and have no free cash. But what’s not fine is avoiding these stocks for the wrong reasons. For example, Dan V. from California responded with the following: “Chipotle must be overpriced at $400!!! “No dividend. “Enormous PE Ratio. “I love...

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