Saturday February 06, 2010
In 1970, Carlton G. Lutts began the Cabot Heritage Corporation and launched his first investment newsletter—the Cabot Market Letter.
The passionate venture was a great success and Carlton soon had an eager and loyal following of subscribers. Carlton was joined in 1986 by his son, Timothy, and they worked side-by-side picking stocks until Carlton retired in 2004.
Cabot is headquartered in historic Salem, Massachusetts, in a converted public library building constructed in 1934. Like our building, which has stood the test of time while adapting to modern demands, we are proud of our roots, but we are dedicated to progress and growth, Cabot employees takes great pride in providing our customers with smart investment advice and timely, personal service.
Timothy Lutts heads one of America’s most respected independent investment advisory services, publishing eight newsletters to over 150,000 subscribers around the world. He leads a dedicated team of professionals who serve individual investors with high-quality investment advice based on time-tested Cabot systems.
Timothy also edits Cabot Stock of the Month Report and is a regular contributor to Cabot's e-newsletter, Cabot Wealth Advisory, and blog, The Iconoclast Investor.
Under his leadership, Cabot advisories have been honored numerous times byTimer Digest, Hulbert Financial Digest and Dow Jones MarketWatch as the top investment newsletters in the industry.
In 2007, Cabot was the only publisher with two investment advisories, Cabot Market Letter and Cabot China & Emerging Markets Report, ranked among the top 10 investment newsletters by Hulbert.
The two publications were also recognized as Best Financial Advisory Newsletter by the Specialized Information Publishers Association: Cabot China & Emerging Markets Report in 2008 and Cabot Market Letter in 2009.
After working in this business for more than 25 years, Timothy says, "There are 10 things I know. The first five are directly about investing, the second five, indirectly."
1. The business of investing can provide great rewards to those who work at it and are willing to learn. Those who refuse to learn will lose money.
2. To succeed as an investor in growth stocks, it’s best to buy when upside potential dwarfs downside potential, to cut losses short, and to let winners run.
3. To succeed as an investor in value stocks, it’s best to buy low and hold patiently, until the stock is fully valued.
4. Your greatest enemies are your own emotions and the blow-dried fellow who reads the evening news with a heartfelt–but undeserved–sense of urgency. Try to ignore them both.
5. For over two centuries, the long trend of the markets has been up, reflecting the growth of asset values, and I recommend that you invest in synch with that trend. Your greatest ally is time.
6. As to the world, globalization is a powerful trend that is positive for the world as a whole. Embrace it, looking forward, not backward.
7. However…consider the idea that the underappreciated risks arising from the increasing inability of fossil fuels to fill growing market demands are greater than the well-publicized risks deriving from global warning. Invest accordingly.
8. And…consider the idea that the longer our elected representatives in Congress sanction the increasing growth of our national debt, the greater the pain when we have to pay that debt, while providing Social Security and Medicare for an exploding population of old folks (myself included). Invest accordingly.
9. In the meantime, keep on learning. Not only will it help you become a better investor, it will keep you young.
10. Finally, have faith in the ability of intelligent, innovative men and women to adapt, as they always have, and to solve the problems of the future in ways that are unimaginable to people of today. Invest in these people when you can.”
Timothy has appeared on numerous podiums as an investing expert, including Bloomberg TV and the World Money Show, led Investor's Business Daily discussion groups and been interviewed by Dow Jones MarketWatch, TopStockAnalysts.com, VoiceAmerica.com and numerous other business news organizations.
Each month, Timothy Lutts selects Cabot’s most attractive stock recommendation for current market conditions from the portfolios of other Cabot newsletters: Cabot Market Letter, Cabot Top Ten Report, China & Emerging Markets Report, Cabot Benjamin Graham Value Letter and Cabot Green Investor. A great introduction to the range of Cabot investment strategies, Cabot Stock of the Month Report investors build a diversified portfolio of growth stocks, momentum stocks, international stocks, and value stocks.
