• Home
  • Daily
  • Free Services
    • Reports
    • Webinars
    • Videos
    • Daily
  • Premium Services
    • Prime Pro Membership
    • Prime Membership
    • Cabot Retirement Club
    • Advisories
      • Cabot Dividend Investor
      • Cabot Early Opportunities
      • Cabot Global Stocks Explorer
      • Cabot Growth Investor
      • Cabot Income Advisor
      • Cabot Marijuana Investor
      • Cabot Micro-Cap Insider
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Small-Cap Confidential
      • Cabot Stock of the Week
      • Cabot Top Ten Trader
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
      • View All
    • Summit
  • My Services
  • Daily Archive
  • Browse Topics
    • How To Invest
    • Value Investing
    • Growth Stocks
    • Stock Market
    • Dividend Stocks
    • Options Trading
    • Emerging Markets
    • Small-Cap Stocks
    • Income Investing
    • ETFs
    • View All Topics
  • Stock Picks
  • Keyword Index
  • Analyst Index
  • Manage Account
  • About
    • About Us
    • Learn
      • Glossary
      • Chart School
      • Stock Market Timing Indicators
      • Manage Your Own Money
    • Webinars
    • Buttons
  • Contact Us
  • Privacy Policy, Terms of Use & Premium Service Terms & Conditions
  • RSS Feed
  • All Investing Lessons
  • Start Investing
  • Investing FAQs

Cabot Wealth Network Logo

  • Home
  • Daily
  • Free Services
    • Reports
    • Webinars
    • Videos
    • Daily
  • Premium Services
    • Prime Pro Membership
    • Prime Membership
    • Cabot Retirement Club
    • Advisories
      • Cabot Dividend Investor
      • Cabot Early Opportunities
      • Cabot Global Stocks Explorer
      • Cabot Growth Investor
      • Cabot Income Advisor
      • Cabot Marijuana Investor
      • Cabot Micro-Cap Insider
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Small-Cap Confidential
      • Cabot Stock of the Week
      • Cabot Top Ten Trader
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
      • View All
    • Summit
  • My Services
  • About
  • Sign In
  • Register
  • | Register
  • Sign In
  • Register
  • | Register

individual stocks Archives

What are Individual Stocks? 

Individual stocks, unlike an ETF or Mutual Fund, require more attention, but offer the opportunity for greater rewards.

Most people don’t think very much about individual stocks. Financial pundits talk about the market as a whole. We look at our 401k to see if it’s gone up (or down), and if there’s some big IPO, you’ll hear about it for a while, then the excitement will die down. 

That makes sense, largely because most 401k plans are tied to the major indexes like the Dow or Nasdaq through ETFs or mutual funds. You can think of ETFs and mutual funds as baskets full of different stocks. Many will have a bundle of stocks that are weighted similarly to a major index, which is why your 401k goes up and down with the market.

By contrast, individual stocks are stocks in… you guessed it: individual companies. They might be major blue-chip corporations or micro-cap startups. Some of them may very well be included in your ETF, but they’re also available on the market to any investor. So rather than have an ETF which might include Stocks A-Z, an investor could just buy shares of Stocks A, D, K, L, and Y. 

There are, of course, pros and cons to investing in individual stocks. Because ETFs and mutual funds have so many stocks in them, there’s less risk that you will lose a lot of money if one or two of those stocks really sink. On the other hand, if one of your five or six stocks drops by 20%, you could potentially lose a large sum. 

The inverse is true, too. A large gain in a few stocks won’t make a huge difference when your investments are divided up in an ETF, whereas a 30% gain in one stock out of five or six can substantially boost your portfolio. 

Investing in individual stocks is fun and rewarding, but you do have to pay attention to what’s going on. If you’d rather “set it and forget it,” you may be better off with ETFs.

To learn more about stocks and investing, download our FREE report, How to Invest in Stocks and Other Investing Basics, today. You’ll learn about the four types of stocks, what it takes to be a successful investor, and you’ll discover five reasons you should skip the broker and invest on your own. 

Read More

Cabot Prime Week Ending January 22, 2021

From the Cabot Prime Week Ending January 22, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Pro Week Ending January 22, 2021

From the Cabot Prime Pro Week Ending January 22, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Top Ten Trader Movers and Shakers Weekly Update   

January 22, 2021|From Cabot Top Ten Trader|by Mike Cintolo|Growth Stocks

It's been another good week for the market, though we’re seeing an increasing amount of crosscurrents and rotation—even with this morning’s dump, the big-cap indexes are solidly positive on the week, but the leading small- and mid-cap indexes are flat-to-down.
Read More

Cabot Small-Cap Confidential Weekly Update

January 21, 2021|From Cabot Small-Cap Confidential|by Tyler Laundon|Small Cap Stocks

The big news this week was, of course, the swearing in of President Biden and all the associated stories about the transition. Fun fact – portfolio holding Everbridge (EVBG) supplied its Mass Notification system to help keep Washington, D.C. area residents and visitors safe and in...
Read More

Cabot Growth Investor Bi-weekly Update

January 21, 2021|From Cabot Growth Investor|by Mike Cintolo|Growth Stocks

Not much has changed with the market’s picture—most stocks (especially cyclical stocks) are very strong, and we’re happy that the Model Portfolio is off to a good start this year after a great 2020. However, things are also quite frothy, few stocks are attractive...
Read More

Cabot Global Stocks Explorer 727

From the Cabot Global Stocks Explorer 727 issue of Cabot Global Stocks Explorer|by Carl Delfeld|Emerging Markets

Today, I have a new recommendation that links three high profile growth trends: SPACs, e-commerce and internet gaming, and mobile payments.
Read More

Cabot Dividend Investor Weekly Update

January 20, 2021|From Cabot Dividend Investor|by Tom Hutchinson|Dividend Stocks

The market is off to a good start this year and anticipating wonderful things for 2021.
Read More

Cabot Marijuana Investor Update

January 20, 2021|From Cabot Marijuana Investor|by Timothy Lutts|Growth Stocks

Over the long run, the S&P 500 has produced an average annual return of about 10% per year. Our aim at Cabot, through our various services, is to do better, and in the long run we do.
Read More

Cabot Undervalued Stocks Advisor Weekly Update

January 20, 2021|From Cabot Undervalued Stocks Advisor|by Bruce Kaser|Value Investing

As value investors in a remarkably robust (exuberant) stock market, full valuation impels us to want to sell a stock. Such is the case with General Motors. On most conventional metrics, the stock is fairly priced. Through the courtesy of several friends, we’ve some...
Read More

Cabot Income Advisor Weekly Update

January 20, 2021|From Cabot Income Advisor|by Tom Hutchinson|Income Investing

The positions remaining in the portfolio will benefit if the market continues to move higher.
Read More

Cabot Stock of the Week 331

From the Cabot Stock of the Week 331 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

Overall, the market remains very healthy. Yes, sentiment is a bit high, and yes, valuations are a bit high, but I learned long ago not to fight the trend.
Read More

Cabot Prime Week Ending January 15, 2021

From the Cabot Prime Week Ending January 15, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Pro Week Ending January 15, 2021

From the Cabot Prime Pro Week Ending January 15, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Top Ten Trader Movers and Shakers Weekly Update   

January 15, 2021|From Cabot Top Ten Trader|by Mike Cintolo|Growth Stocks

From a top-down perspective, the week has been fine—the S&P 500 and Nasdaq are down less than 1% on the week as of this morning, while broader indexes (small and mid-caps) are up decently. All in all, that keeps the intermediate-term trend pointed higher,...
Read More

Cabot Growth Investor 1463

From the Cabot Growth Investor 1463 issue of Cabot Growth Investor|by Mike Cintolo|Growth Stocks

Taking Things on a Stock-by-Stock Basis We believe one of the main reasons our system has proved durable is that it doesn’t focus on just one or two factors, but incorporates things from different angles. For instance, when selecting stocks, we’re not only looking charts...
Read More

Cabot Small-Cap Confidential Weekly Update

January 14, 2021|From Cabot Small-Cap Confidential|by Tyler Laundon|Small Cap Stocks

As we near the end of the second week of 2021 and approach inauguration day, the market is barreling full steam ahead, seemingly unaware of the dung piles that are consistently thrown in its path.
Read More

Cabot Global Stocks Explorer Bi-weekly Update

January 14, 2021|From Cabot Global Stocks Explorer|by Carl Delfeld|Emerging Markets

The phrase you hear more than ever from market prognosticators these days is that they are “cautiously optimistic” about the state of the stock market. In some ways this is pretty useless advice, but in another it hits the nail on the head. market...
Read More

Cabot Income Advisor Weekly Update

January 13, 2021|From Cabot Income Advisor|by Tom Hutchinson|Income Investing

In this issue I highlight two timely stocks for purchase now.
Read More

Cabot Marijuana Investor Update

January 13, 2021|From Cabot Marijuana Investor|by Timothy Lutts|Growth Stocks

Part of the marijuana sector’s strength, of course, is because the broad market is also trending higher. But a substantial part comes from the growing realization, especially in wake of last week’s election that promised us a uniformly Democratic federal government, that this will...
Read More

Cabot Undervalued Stocks Advisor Weekly Update

January 13, 2021|From Cabot Undervalued Stocks Advisor|by Bruce Kaser|Value Investing

Most stocks on the Cabot Undervalued Stocks Advisor recommended list had strong performance this past week. Part of the strength was perhaps due to money managers’ general optimism that seems to brighten with turn of the calendar. With last year’s bonuses firmly in bag,...
Read More

View Topics

  • Dividend Stocks
  • Emerging Markets
  • ETFs
  • Growth Stocks
  • How To Invest
  • Income Investing
  • Options Trading
  • Small Cap Stocks
  • Stock Market
  • Value Investing

Subscribe To

  • Cabot Top Ten Trader
  • Cabot Stock of the Week
  • Cabot Global Stocks Explorer
  • Cabot Small-Cap Confidential
  • Cabot Dividend Investor
  • Cabot Options Trader
  • Cabot Options Trader Pro

Customer Service

  • Manage My Account
  • Subscription Questions
Enter Your Log In Credentials

  • Lost your password? Create New Password
  • No account? Sign up
  • Manage Account
  • Subscribe
  • About
  • Contact Us
  • Privacy Policy, Terms of Use & Premium Service Terms & Conditions
  • Analyst Index
  • Keyword Index
  • Daily Archive
  • RSS Feed

Copyright © 2021 Cabot Wealth Network
Cabot Heritage Corporation
176 North Street, Salem, MA 01970
Phone: (800) 326-8826
Fax: (978) 745-1283
Email: support@cabotwealth.com

Powered by Mequoda Systems

Subscribe to Our Newsletter

Discover the hottest stocks, investing tips and analysis from Cabot analysts in our free Cabot Wealth Daily newsletter delivered right to your inbox.

Cabot Wealth 50th anniversary