The reason we don’t rate the Cabot investment newsletters very high or do a more in-depth presentation is because the Cabot investment newsletters have undergone several name changes over the years. The editor always seems to be chasing the best performing investment sectors and reporting results as such. Focusing on what’s hot and in the news is great for selling subscriptions but not as kind to subscribers.
When the newsletter first started it focused on internet stocks in the last ’90s while they were on their historic bull run. After the dot com bubble, the stock newsletter results crashed along with the tech bubble.
At that time Cabot changed their approach once again, focusing on a different group of market-leading stocks and changed their newsletters name. After this new approach started to evaporate they once again changed direction and focused on China and eventually, all emerging markets in the BRIC (Brazil, Russia, India, China). The move allowed them to handily outperform the S&P 500 for a few years as emerging markets went on a tear. When the emerging markets started to falter, so did the results of the newsletter
As we candidly pointed out in point 6 of our article on how to review stock newsletters you have to compare how an editor investment selections compare to the same benchmark, not an unrelated one to truly gauge their skill level over time.
It will be interesting to see which trend the newsletter chases next.