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Value Investing: An Interview with J. Royden Ward

April 7, 2012
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Value Investing: An Interview with J. Royden Ward

More than 70 years have passed since Benjamin Graham first outlined the concept of value investing in the 1934 book Security Analysis. Warren Buffett is one of many investors who’ve proven the value of Graham’s system, and still today it’s one of the surest ways to find undervalued stocks in the marketplace. Cabot Benjamin Graham Value Letter, which takes its inspiration from Graham, works on an adapted system developed by editor J. Royden Ward–who was taught by one of Graham’s own students. This week, we’re chatting with Roy about why he chose value investing, his personal outlook on the market right...

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How Would You Keep Jobs in the U.S.?

April 5, 2012
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My theme today is conflict, and at the end of my first rant I have a question to ask you. And I’d actually like to hear your response. I’ll even publish your answers next week. I know it’s risky to address hot-button political issues in a Cabot Wealth Advisory, but I feel compelled to write a quick word about China “stealing” American jobs. This is one of my favorite themes, and I’ve written about it before. The run-up to this year’s presidential elections has featured innumerable debates, and the U.S. economy’s failure to provide adequate jobs for Americans is a...

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Love Your Family, Not Your Stocks

April 2, 2012
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Imagine yourself in the following position: You buy a stock you’ve researched and feel excited about. The company has a new product or service, and as soon as you buy the stock, the price heads higher … and higher … and higher! There might be a shakeout or two that you’re able to sit through, but after a few months, you’re sitting on huge gains. At this point, it’s only natural to feel affection toward the stock. After all, it’s done everything you’ve asked it to do, and all the news is good, pointing to even higher gains. It...

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Leave Your Brain at the Door, Please

March 29, 2012
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I am not a big fan of video games—nothing against them, just not my thing—but some of my friends are, and occasionally, if the stars align and I actually have some free time (imagine!), we might sit around and play a game to escape reality for a couple of hours. When this happens, of course, I generally have no idea of how to play; my friend then explains how to equip my character with weapons or magic, the best way to improve his strength or other powers and the workings of the game in general.  In other words, in...

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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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