Great Advice for New Investors

Great Advice for New Investors

A Rich History

In Case You Missed It

Yesterday, you heard from Timothy Lutts, who wrote about the stock market’s three-week rally and why it’s time to buy. He wrote, “My charts tell me the worst has passed, and this correction will soon be replaced by a new leg up in the Bull Market of 2009.  So my goal today is to get you back into the market, so you’ll be one of the early winners!” And he recommended that you follow the guidelines in Cabot Stock of the Month Report, of which he is the editor. Today, I want to delve into the history of that publication and explain why it’s so popular among investors, especially those new to the stock investing game.

Most investors tell us they choose Cabot Stock of the Month Report because it helps them build a diversified portfolio while they learn about various investing styles. Beginning investors especially like receiving the Report because over time, they learn the strategies of our various other investment advisories. Gaining comfort in the different investing styles makes it easy to know which of our advisories is right for them.

Cabot Stock of the Month Report is the perfect advisory for people new to investing, or new to Cabot. It gives subscribers a taste of five of Cabot’s newsletters, allowing them to decide which investing system is right for them. If you don’t have an investing system, or don’t know which type of investing system is right for you, Cabot Stock of the Month Report can help you figure that out. By offering something from each of Cabot’s publications, it introduces you to several different investing strategies, helping you decide which one is right for you. It also provides a diverse selection of stocks, as each one is picked from a different publication with its own philosophy and flavor.

Tim uses a system called Spectrum Investing to pick the stocks for the Report, so called because it enables him to use the wisdom of all our editors, and it gives him the freedom to pick a stock from any of their publications. The end result brings you the very best stock for current market conditions each month.

To chose the Stock of the Month, Tim looks at what’s going on in the market and which stocks have been recommended in the other Cabot publications, and selects the best stock based on how the stock market is acting. It could be a Green stock, momentum stock, value stock, growth stock or emerging market stock, but it will always be the top stock for current market conditions.

For example, Tim’s latest stock, just recommended this week, is a company from China, a country whose economy is growing far faster than that of the U.S. Tim had this to say about the stock:

“I’m very excited about this month’s stock for several reasons. One, it’s a great growth company, with revenues up 79% in the latest quarter and earnings per share up 52%. Two, it’s located in China, where there is no recession and where GDP is expected to grow about 8% this year. Three, it’s not well known, mainly because it only came public in late 2007. Four, and most important, our Cabot China & Emerging Markets Report just gave a buy signal!”

There’s much more in the issue, including details of the company’s financials and technical analysis of the stock’s chart.  If you subscribe now, you can be reading the entire Report within hours.  In addition, you’ll be guaranteed a year’s worth of handpicked stocks–from Green to international to value to classic growth–to build your portfolio.  Ideally, you’ll find among them a system that can help you become a successful investor.

But there’s more to Cabot Stock of the Month Report than just what’s going on right now. The publication has a rich history, so I interviewed Tim to find out more …

Question: Tell us about Cabot’s history.

Answer: Back in 1970, my father, Carlton Lutts, founded the Cabot Market Letter, an investment advisory newsletter focused on market timing and growth stock selection.  Investing had always been a hobby of his (along with giving advice), and with the launch of the Letter, he took the plunge toward turning his hobby into his career. In 1972, my father quit his regular job and devoted himself to the Letter full-time, and at the start of 1974 he expanded it to six pages.  

Question: When did you get started in the business?

Answer: By 1986, the business had grown substantially, my father had cultivated a great group of employees, and he was still writing every word of every issue of the Cabot Market Letter.  But the mutual fund boom was underway, and the public craved advice of which funds to buy, and when.  So my father recruited me, mainly because of my writing abilities, to write a section for the Letter devoted to mutual funds … pages seven and eight.

In October 1988, we launched Cabot’s Mutual Fund Navigator as a separate publication, and a long 16 months later we terminated the mutual fund pages in the Cabot Market Letter, replacing them with … Cabot Stock of the Month.  The first stock highlighted was Kimmins Environmental.

Question: When did Cabot Stock of the Month become it’s own publication?

Answer: As the years went by, we put Cabot’s Mutual Fund Navigator to sleep and we launched new newsletters focusing on our core competency–stocks.  My father retired in 2004.  And at the end of 2005, I spun off Cabot Stock of the Month Report as a separate publication … and changed it.  Instead of focusing solely on growth stocks recommended by Cabot Market Letter, Cabot Stock of the Month Report recommends a spectrum of stocks, selected from all the Cabot investment advisories.  My goal was to provide beginning investors a sampling of our content, so they could best decide what investment system might be right for them.

Question: What is Cabot Stock of the Month Report like today?

Answer: Today, Cabot Stock of the Month Report, of which I’m the editor, presents one stock per month chosen from Cabot Market Letter, Cabot China & Emerging Markets Report, Cabot Top Ten Report, Cabot Green Investor and Cabot Benjamin Graham Value Letter.  It explains why the stock was selected and why it’s favored in the current market climate.  And it explains how you should invest in it.

If you subscribe now, you can be reading the entire Report within hours.  In addition, you’ll be guaranteed a year’s worth of handpicked stocks, reflecting the styles of our various newsletters, from Green to international to value to classic growth.  Ideally, you’ll find among them a system that can help you become a successful investor.

In case you didn’t get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, I have links below to each issue.

Cabot Wealth Advisory 3/30/09 – Ending the Post Office Monopoly

On Monday, Timothy Lutts wrote about the history of the post office and its current monopoly in first class mail delivery. Tim examined two U.S.P.S. competitors, that are also in the area of mail delivery and discussed a potential competitor from the digital world. Featured stocks: United Parcel Service (UPS), FedEx (FDX) and (AMZN).

Cabot Wealth Advisory 4/2/09 – Leaders Ready for Lift-Off

On Thursday, Michael Cintolo wrote about why it’s important to heed the saying “Patience is a virtue” when investing in the stock market. Mike wrote about how many of the biggest winners don’t get off their launching pads for several weeks after the market bottoms and advised not rushing back into the market too quickly. Mike finished by writing about a high-potential turnaround stock that has been featured in Cabot Top Ten Report. Featured stock: Fidelity National Finance (FNF).

Until next time,

Elyse Andrews
Editor of Cabot Wealth Advisory

Editor’s Note: Don’t miss the current stock recommendation from Cabot Stock of the Month Report–just released this week. It’s a fast-growing Chinese company selected from our top-ranked Cabot China & Emerging Markets Report, which just flashed a buy signal. Get started today and you could be reading Cabot Stock of the Month Report within hours!


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