Eleven Swimming Pools
One Great Stock
Miami Beach is a fun place to visit, but I wouldn’t want to live there; I’m a New Englander at heart.
Plus, in Miami Beach, as my wife remarked last week, people are so concerned about their appearance that to them what’s on the outside is often more important than what’s on the inside!
So why were we in Miami Beach?
For the Business Information and Media Summit, a gathering of nearly 400 people working in various aspects of the publishing and information industries.
It was a diverse group, and I learned a lot, which hopefully will allow all of us at Cabot to serve you better as the world evolves.
But what’s on my mind now is swimming.
You see, when checking in to the Fontainebleau Hotel, the exceedingly thorough desk clerk, while enumerating the hotel’s offerings, mentioned that there were 11 swimming pools at the hotel.
And soon after, over a drink (just one) in the lobby bar, I heard myself mention that I might try to swim in all of them!
Why would I do that?
Well, whenever I’m traveling, I like to swim first thing in the morning.
Plus I like a challenge.
Plus I like to count things.
So, over two consecutive mornings, abetted by my wife, I did manage to swim in all 11 of the hotel’s pools.
Two were hot tubs, where I was barely swimming, and one was a two-inch deep kiddie pool that I simply walked in, but the rest were real pools.
And three in particular might have posed special challenges: the Sorrento Pool, on the fifth floor of the Sorrento Tower, the Tresor Pool, on the seventh floor of the Tresor Tower, and the Round Pool, which is surrounded by cabanas that guests pay up to $1,000 a day to lounge in,
(Here’s a look at the Round Pool. That’s not me.)
But at 7:00 in the morning, it was easy. I had each pool to myself. And when I was done with each morning’s swim, I was able to refuel with a big delicious breakfast, including what might be the best pain au chocolat in the country.
So what was the benefit, aside from burning enough calories so I could indulge in pain au chocolat without guilt?
The main benefit, of course, was the exercise, which was a great way to kick off a long day of sitting in conference rooms.
But a secondary benefit was the sense of achievement that came from achieving my goal, foolish as it seemed when I first voiced it.
But that simple mention-in public-was an important factor in my achieving my goal.
And the good thing about achieving one goal is that it gives you a boost of confidence that helps you set bigger goals!
Now, ideally, these are worthwhile goals, like losing 10 pounds or quitting smoking, or improving your investing win/loss percentage.
But even a goal like visiting every major league ballpark in the country, or reading every book written by a particular author, or swimming in 11 pools, can be worthwhile. Try it!
Swinging back to the Business Information and Media Summit for a minute, one of the topics at the conference involved the ongoing shrinkage of print advertising revenues, and publishers’ attempts to replace that revenue.
The effect of this trend on newspapers is well known, but it’s affecting most other print formats too, from magazines to professional journals. As more and more people receive their information over the Internet instead of print, circulation drops and advertising slowly (or not so slowly) dries up.
One new revenue source, which you’ve probably encountered, is the video commercial.
You’ve probably seen it. You click on a link to an Internet video, and you’re met by a commercial that the provider wants you to watch before you get the free video.
Personally, I avoid them. I mute the sound and look away from the screen.
And professionally, I hope never to use them.
For 44 years, Cabot has succeeded at serving investors like you without carrying advertising, and with your continued patronage, we hope to continue for 44 more years.
So, without further ado, here’s more of what you’ve come to depend on us for:
One great investment!
One of my most common caveats to people when it comes it investing is this: there are many successful investing systems, but not all are right for you. To become a successful investor, you have to find the system that is right for you, and then follow that discipline.
Which is a way of saying that today’s recommendation is not for everybody.
But if you appreciate the growth potential of China in general-
And if you appreciate the profits that can pile up rapidly in less well known, fast-growing companies-
Then maybe you’d like to invest in Vipshop Holdings (VIPS), or, as Paul Goodwin labeled it back when he first recommended it:
Very Important People Shopping
Here’s part of his recommendation.
“Vipshop Holdings is thriving where two major trends in modern China meet. The first is the rapid adoption of mobile technology, including an ongoing rush to 4G smartphones. The second is online retailing.
“Vipshop Holdings offers fashionable merchandise, including clothing, shoes, accessories, cosmetics and more, all at discounted prices. But what really makes Vipshop special is that sales are all discounted online flash sales. That means limited amounts of each product are offered for limited amounts of time, and at a significant discount to full retail, usually 50% to 70% below original retail.
“China has no national discount chains, so Vipshop is becoming one, but doing it online.
“Results have been outstanding, with three full years of astonishing revenue growth-1,059% in 2010, 597% in 2011 and 205% in 2012-and strong growth through the first three quarters of 2013 averaging 170%.”
When Paul wrote that, back in January, the stock was trading at 106. Since then it’s split 10-for-1, so readers who followed his advice actually got in around 10.
And today it’s trading around 25, meaning they’re looking at a profit of 150% in less than 10 months!
And the stock is still climbing!
So, you could just buy VIPS here.
But a smarter move would be to check on Paul’s latest advice on the stock, which looks a little extended to me.
Also, you’ll want to see what else he’s recommending today, and ideally, if you’re serious about making money, get his wisdom every week.
Yours in pursuit of wisdom and wealth,
Chief Analyst, Cabot Stock of the Month
Publisher, Cabot Wealth Advisory
P.S. Coming Next Week: Cabot’s 10 Favorite Low-Priced Stocks for 2015
Due to popular demand, we publish Cabot’s 10 Favorite Low-Priced Stocks Report every year in December. Don’t miss your opportunity to reserve this year’s copy of 10 low-priced stocks for 2015 with immense short-term profit potential. Please look for the email to reserve your copy on Wednesday, November 26.