Investment newsletters that consistently beat the market are hard to come by. Fortunately, we have six of them - and those are just the growth advisories!
Honesty and transparency are in short supply in this industry. Investment newsletter publishers often boast about their big winners while sweeping their many losers under the rug. Trust me – I’ve worked for one of them.
But at Cabot Wealth Network, we pride ourselves on being honest with our readers. It’s part of what has kept us in business for half a century – that and consistently beating the market. So, when I received an email from a new reader the other day saying that he had been burned by past experiences with other investment newsletters (we call them investment advisories), and wondered whether we adhered to the same practices, as Cabot’s managing editor, I took it seriously.
In essence, the reader’s email lamented that his experience with a different high-profile investment newsletter publisher involved the aforementioned sweep your losers under the rug, only brag about your winners strategy.
“I’m wondering if that is the same (strategy) with Cabot,” the reader asked. “Why should I trust your advice more than others that are hit-and-miss on their stock picks?”
Fair question. And make no mistake, like everyone who has ever recommended stocks for a living, we’ve had our fair share of losing stock picks over the years. In fact, each of our investment advisory portfolios has at least one losing stock right now. However, our winners far outnumber our losers.
Want proof? I performed an inventory on each of our six investing advisories that are focused on long-term growth to find out the average return on each. (Note: We just launched a seventh long-term growth investing advisory called Cabot Micro-Cap Insider, which recommends micro-cap stocks on a monthly basis, but it’s too young to have meaningful results.) Here are the results—and how they compare to the one-year return in the S&P 500, Dow Jones Industrial and Nasdaq:
Cabot Investment Newsletter Performance
Cabot Early Opportunities: +32% average return
Cabot Global Stocks Explorer: +45%
Cabot Growth Investor: +49%
Cabot Marijuana Investor: +89%
Cabot Small-Cap Confidential: +171%
Cabot Stock of the Week: +179%
One-Year Market Performance
S&P 500: +4.2%
Dow Jones Industrial Average: -3.9%
If you’re scoring at home, all six of our long-term growth investing advisories have outperformed the three major U.S. indexes over the past year. Here are a couple other things to note: Cabot Early Opportunities, led by chief analyst Tyler Laundon, didn’t launch until last September, so its 32% average return is all on stocks recommended in the last eight months. Also, Tyler’s other investment newsletter, Cabot Small-Cap Confidential, boasts a 171% average return on small-cap stocks, an area of the market that’s performed even worse than large-cap stocks (the benchmark Russell 2000 index is down -13% in the last year). In other words, Cabot Small-Cap Confidential is beating its benchmark index by an even wider margin!
Marijuana stocks, after massive gains in 2016-2017, completely cratered in late 2018 and all of 2019. They’ve since bottomed and appear to be headed in the right direction again finally, but the damage was significant. Nevertheless, our Cabot Marijuana Investor advisory, helmed by Cabot’s CEO and Chief Investment Strategist, Tim Lutts, has an average return of 89% on its seven remaining marijuana stock positions.
Tim also runs Cabot Stock of the Week, which selects one stock from among our other advisories every week to recommend. That approach has worked quite well, with an average return of 179%!
Cabot Growth Investor, our signature investment advisory, created by Cabot founder Carlton Lutts in 1970 when it was called Cabot Market Letter, and since perfected under Chief Analyst Mike Cintolo, boasts a 49% return despite the fact that none of its eight current recommendations has been in the portfolio longer than since last September.
Last but not least, there’s Cabot Global Stocks Explorer, which does as it says: scours the globe in search of the best growth investing opportunities outside U.S. borders. At a time when most global stock markets have either collapsed or pulled back sharply as the world deals with the ongoing coronavirus fallout, Chief Analyst Carl Delfeld has managed to treat his Explorer subscribers to a 45% average return.
How have they all done it? By riding winners, pruning losers via strict loss limits and reading stock charts. For 50 years, that’s been the Cabot way. It’s worked out for us pretty well.
Granted, this is just a snapshot. But it’s quite the unfavorable conditions for a snapshot, coming just six weeks after a historic market crash (34% drop in five weeks). Despite that, all our growth investing advisories are up double digits, and outpacing even the Nasdaq by a wide margin.
If those are the kinds of returns you’re looking for in volatile markets like the current one, you can subscribe to any one of our investment newsletters by clicking here.
No, not all our stock picks will be winners. But as you can see, our winners tend to vastly outnumber our losers, and our advisories are soundly beating the market now—and have been for decades.