Timothy Lutts heads one of America’s most respected independent investment advisory services, publishing 10 newsletters to nearly 200,000 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 contributes to Cabot’s free newsletter, Cabot Wealth Advisory, and Cabot’s blog, The Iconoclast Investor.
Under his leadership, Cabot advisories have been honored numerous times by Timer 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.
Cabot China & Emerging Markets Report was named 2008 Best Financial Advisory Newsletter by the Specialized Information Publishers Foundation and is currently the #1 newsletter for five years as ranked by Hulbert Financial Digest.
Cabot Market Letter was recently honored as one of Timer Digest’s Top Ten Timers.
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.
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 sync 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.
[...] you probably know, we at Cabot value education very highly. Just last week, Editor Timothy Lutts implored you to read the Education section of our Web site. And in that spirit, I’ve been at a [...]