The History of Cabot Heritage Corporation

Henry LuttsFrom one perspective, the Cabot history is one of business.

To begin, you could start with Henry Lovewell Lutts, born in Kittery, Maine, in 1849. He was a self-employed housebuilder by trade, and the houses on Lutts Avenue in Kittery stand as a reminder of his work. Later in life, Henry built houses in New Hampshire and Massachusetts, typically moving into one once the roof was on and selling it when he could move into his next one.

His second son was Carlton Gardner Lutts (the middle name came from the parents of Erle Stanley Gardner, who lived next door in Malden, Massachusetts—and it looks like Erle's middle name came from Carlton’s older brother Stanley). Thanks to his father’s occupation, Carlton moved 26 times as a child. But he was bright! An inventor and entrepreneur; he started businesses making and selling jigsaw puzzles and chemically treated paper roses that forecast the weather. But those were just sidelines. Carlton was a metallurgist by trade; he worked at the Boston Naval Shipyard and had patents on methods of chain manufacture that brought in royalties.

His wife, Grace Alberta Smith of Salem, had a “money mind” from the start. She bought her first house at age 19, with her own savings, over the objections of the bankers who were unaccustomed to dealing with single young women. She and Carlton had three children. And in 1941, at Grace’s urging, they used the chain patent royalties to buy the old Cabot Farm in Salem, a 28-acre property that currently is home to roughly 30 members of the Lutts family. Grace was a lifelong investor in stocks, favoring the buy-and-hold method.

Carlton LuttsTheir second son, Carlton Gardner Lutts Jr., was trained as an engineer, but his love was the stock market. In 1970, driven by a desire to share his thoughts on stock selection and market timing, he began writing and publishing the Cabot Market Letter (named after the farm) on the proverbial kitchen table. As the years passed, his homespun wisdom and irrepressible passion helped hundreds of thousands of investors build big profits in great growth stocks like Fleetwood, WD-40, American Medical and Syntex.

Carlton’s second son, Robert, founded Cabot Money Management in 1983, to fulfill the demands of Cabot subscribers who had been asking for investment management services, and that business is thriving today, providing a full range of wealth management services to individuals and institutions.
 
Carlton’s first son, Timothy, joined the Cabot publishing business (by then incorporated as Cabot Heritage) in 1986 to contribute advice on investing in mutual funds, which were then enjoying a boom. As time went by, Timothy filled the Cabot stable with experts on value investing, international investing, options investing, dividend investing, small-cap investing and more.

Carlton’s third son, Andrew, launched the Internet service company Net Atlantic in 1995, and today that successful company helps hundreds of organizations worldwide—including Cabot—communicate with their customers.

Meanwhile, at Cabot, Carlton and Timothy worked side-by-side for 18 years, transitioning the business into the digital age while remaining focused on the goal of serving subscribers with the best independent investment advice possible.

Carlton passed away in 2012, but his spirit lives on at Cabot, where Timothy and the entire staff are dedicated to providing investment advice you can trust, year after year, decade after decade.

Stock Picks

Norwegian Cruise Lines

Norwegian Cruise Lines (NCLH) is one of the “big 3” in the cruise industry. There’s a real growth story here thanks to a steady expansion in the firm’s ship count, along with an acquisition last year that gives it exposure to the high end of the market.

Constellation Brands

This maker of wines (Mondavi, Clos du Bois, Ravenswood), beer (Corona, Modelo and TsingTao) and spirits (Svedka, Black Velvet and Paul Masson) gets 89% of its revenues from the U.S. and 11% from Canada, so the strong dollar isn’t hurting.

Cheetah Mobile

My stock pick this week is a Chinese stock that was featured in the Other Stocks of Interest section of Cabot Growth Investor. (It’s also in the portfolio of Cabot China & Emerging Markets Report).

Cabot Wealth Advisory

Why Greece's Default Matters

on June 29, 2015

It’s a critical time for Greece, its countrymen, the nations that hold its debt and its investors. The big question is: Will Greece default on its 1.5 billion euro debt payments that are due tomorrow on the 322 billion euros that it owes to other countries?Read More >

A Straight Answer About Sina

By Paul Goodwin on June 26, 2015

On June 18, I received an email from a subscriber to Cabot China & Emerging Markets Report, the investment advisory for which I’m Chief Analyst. Here’s what I wrote back to my subscriber, slightly edited.Read More >

The Most Common Portfolio Management Mistake

By Chloe Lutts Jensen on June 25, 2015

Diversification is one of the first portfolio management principles equity investors learn. It’s simple enough to understand; it’s simply an extrapolation of the old advice not to put all your eggs in one basket. And it’s good advice. But most investors have a narrow view of what diversification means.Read More >