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Video: Pay Attention to the Data | Cabot Weekly Review

stocks Archives

What are Stocks?

Stocks as we know them today conjure images of fast and furious trading, computer programs, and a hectic stock exchange floor. But stocks weren’t always traded that way.

When we think of stocks today, what comes to mind for many people is Wall Street and the New York Stock Exchange. But stocks, in one form or another, have been around for centuries. In the 1300s, Venetian merchants traded debts. In the 1600s, England’s East India companies issued stocks, even though many of these businesses had no actual business (lookin’ at you, dot.com bust).

The modern U.S. stock exchange developed in the late 1700s, eventually turning into the New York Stock Exchange, where some of the biggest companies in the world are currently traded. But what are stocks?

According to Merriam-Webster, stocks are, “the proprietorship element in a corporation usually divided into shares and represented by transferable certificates.” Or in English, when you own stocks, you own a portion of a company.

Although there are plenty of reasons for investing in stocks, for most of us, they are part of a retirement plan, whether that’s through an employer-issued 401k, an IRA, or investing on our own. However, as evidenced by recessions, depressions, and crashes, investing in stocks can be risky business.

Fortunately, there are plenty of ways to lower your risk and increase your chances of making money in the stock market. One way is to add “forever stocks” to your portfolio. What are stocks you can hold forever?

Forever stocks are fairly evergreen. Typically they are industry leaders that have been growing for a while and should continue to grow for decades to come. They’re stocks you can count on to be viable not only today, but 20 or 30 years from now.

That’s not as easy as it sounds. The toughest thing in stock investing is to do nothing. That’s right, nothing! Once you buy a stock and watch it move up, down and all around for a few weeks, there is an urge to take action.

Why is that so bad?

Your very best ally in the investing business is time. Holding forever is the best way to put that ally on your side, permanently. But you’ve got to buy the right stocks.

And what are they?

  1. They’re the stocks of companies with revolutionary goods and services that are likely to be in big demand by growing numbers of customers.
  2. They’re the stocks of companies that are still relatively small, and thus have room to grow.
  3. They’re the stocks that are not currently loved by investors and thus have the potential to benefit from improved perception as the years go by.
  4. And last but not least, a stock that’s trending up, indicating that investors’ perceptions of the company are improving. This is important because perceptions are always at least as important as reality, at least on Wall Street.

To learn more about finding stocks you can hold for the long term, download your FREE copy of our report, 10 Forever Stocks to Buy Now-and How to Find the Best Growth Stocks.

These stocks might just make you rich.

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Video: Pay Attention to the Data | Cabot Weekly Review

May 27, 2022|by Tyler Laundon |

In this week's video, Tyler Laundon talks about the progress large and small caps have made over the last week and how a strong close heading into the long Memorial Day weekend would be a victory for the bulls. He discusses how small are...
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How to Invest in Stocks with a $10,000 Stock Portfolio

How to Invest in Stocks with a $10,000 Stock Portfolio

May 27, 2022|by Cabot Value Team

You have $10,000 to invest, but do you know how to invest in stocks to create a profitable stock portfolio?
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6 Characteristics of Great Growth Stocks

6 Characteristics of Great Growth Stocks

May 27, 2022|by Timothy Lutts

I performed a study on the common threads in great growth stocks I recommended over a 10-year period. Here are six characteristics that stood out.
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Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

May 27, 2022|by Brendan Coffey

SPACs and growth stocks rose in tandem in 2020 and 2021. Now both are struggling in the new bear market. One has more immediate upside.
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4 Common Sense Investing Steps to Weather the Market Sell-off

4 Common Sense Investing Steps to Weather the Market Sell-off

May 27, 2022|by Bruce Kaser

The current market can drive you crazy, and force you to make unwise decisions. Here are four common sense investing steps to keep you sane.
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Managing Your Own Retirement Portfolio: What You Need to Know

Managing Your Own Retirement Portfolio: What You Need to Know

May 27, 2022|by Cabot Wealth Network

Managing your own retirement portfolio is easier than ever, but is it a good idea? Here are the facts you need to make the right choices.
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Your S&P 500 Index Fund Has Higher Risk Than You May Think

Your S&P 500 Index Fund Has Higher Risk Than You May Think

May 27, 2022|by Bruce Kaser

Putting your money in an S&P 500 index fund has long been deemed a safe way to diversify. The problem is the S&P isn't all that diversified anymore.
Read More

10 Basic Rules of Investing According to the Legends

10 Basic Rules of Investing According to the Legends

May 27, 2022|by Cabot Wealth Network

Follow the 10 basic rules of investing and you'll be on your way to a strong and secure investment portfolio that the investing greats would be proud of.
Read More

Finding an Investing Niche is the Only Way to Consistently Beat the Market

Finding an Investing Niche is the Only Way to Consistently Beat the Market

May 27, 2022|by Rich Howe

Large-cap stocks are a crowded field. To beat the market, you need to find an investing niche. Micro-cap stocks are mine.
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3 Stocks with Insider Buying

3 Stocks with Insider Buying

May 27, 2022|by Nancy Zambell

Very few people are buying stocks right now. Or are they? Insider buying has picked up of late, especially in the following companies.
Read More

A Short Biography of Benjamin Graham

A Short Biography of Benjamin Graham

May 26, 2022|by Timothy Lutts

Benjamin Graham is considered the godfather of value investing. Understanding his system and his thinking can help you find the right value stocks.
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The 3 Top Mid-Cap Stocks to Help You Through this Market

The 3 Top Mid-Cap Stocks to Help You Through this Market

May 26, 2022|by Tyler Laundon

It's been a brutal stretch for growth stocks. But eventually that will change. And you'll want to own the top mid-cap stocks when it does.
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2 More Inverse ETFs Surging as the Market Falters

2 More Inverse ETFs Surging as the Market Falters

May 26, 2022|by Kate Stalter

As most stocks continue to tumble, inverse ETFs are a good way to actually make money in this market. Here are two more that are soaring.
Read More

The 2 Best Chipmaker Stocks for 2022

The 2 Best Chipmaker Stocks for 2022

May 26, 2022|by Brad Simmerman

With more life being digitized and automated the need for chips has never been higher. These are two of the best chipmaker stocks for 2022.
Read More

5 High-Yield BDCs to Help You Invest Like the Wealthy

5 High-Yield BDCs to Help You Invest Like the Wealthy

May 25, 2022|by Tom Hutchinson

Want to invest like the rich without shelling out much cash? Try business development companies. And start with these five high-yield BDCs.
Read More

5 Auto Stocks to Buy as Car Sales Recover

5 Auto Stocks to Buy as Car Sales Recover

May 25, 2022|by Clif Droke

The U.S. auto industry took a pounding in 2020. But as the country reopened, car sales have rebounded in a big way, as have auto stocks.
Read More

How to Set Price Targets on Your Stocks

How to Set Price Targets on Your Stocks

May 25, 2022|by Nancy Zambell

Not many people do it, but it's important to set price targets on all your stocks the second you buy them. Here's how to do it.
Read More

Cheap Small-Cap Stocks are Everywhere. Should You Buy Them Yet?

Cheap Small-Cap Stocks are Everywhere. Should You Buy Them Yet?

May 25, 2022|by Tyler Laundon

"Cheap" isn't a word normally associated with small caps. But cheap small-cap stocks abound these days. Is it safe to buy them yet?
Read More

5 Reliable Dividend Stocks for the Next 10 Years

5 Reliable Dividend Stocks for the Next 10 Years

May 24, 2022|by Chris Preston

Reliable dividend stocks may seem obvious and boring. But if you buy them and hang on to them, they can make your future. Here are five that stand out now.
Read More

3 Shipping Stocks and ETFs to Ride Out Inflation

3 Shipping Stocks and ETFs to Ride Out Inflation

May 24, 2022|by Clif Droke

While metals have retreated in recent weeks, shares of shipping companies are on the rise. Here are my favorite shipping stocks and ETFs.
Read More

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