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Welcome Dear Reader, Welcome to Cabot Wealth Advisory, a free five-times weekly email newsletter brought to you by the Cabot family of investment advisories. This message is confirmation of your subscription. Within the next 48 hours, you'll get your first Cabot Wealth Advisory. In these days of spam filters and blacklists, you might want to ensure that your Cabot Wealth Advisory gets through to you by "whitelisting" us. You can find the details here. You also might be worried about how we're going to use your email address. Don't be. Here's our privacy policy. Cabot Wealth Advisory will never sell, rent or otherwise abuse your email address. It will be used solely for the purpose of sending you Cabot Wealth Advisory and updates from/about Cabot. Should you wish to unsubscribe at any time, instructions are included with each email for immediate removal from the subscriber file. Here's a welcome from Publisher Timothy Lutts, describing in his own words what you can expect as a reader. Enjoy! Your Cabot Wealth Advisory Staff --- Letter from the Publisher The very fact that you're reading this tells me two things about you: First, you want your investments to grow, and second, you're open-minded enough to listen to someone else's ideas about how to make that happen. And that's a good start, because there is no monopoly on wisdom. And sharing good ideas ultimately benefits all parties involved. In the days ahead, we'll bring you a lot of well-researched investment idea from the Cabot analysts. But I want to share with you more than investment ideas. I want to show you how everyday experiences connect to the investment world. It's well known, for example, that investment legend Peter Lynch's discovery of L`Eggs--which turned out to be a 10-bagger for him--began with his wife's purchase of the stockings in a supermarket. In my own case, a life-long love affair with books led me to become an early believer in Amazon.com. Critics, and they were legion--predicted Jeff Bezos' company would fail to make a profit; they said Borders and Barnes & Noble would steamroll the Internet fledgling. But they were wrong. And Cabot readers who followed our advice on Amazon.com walked away with profits of more than 1,200%. And then there's Summit Technology. This was a small company located in Boston that pioneered the industry of laser-eye surgery. We sought out the company to investigate it, liked what we saw, and in the space of a few months, my brother, my father and I had each had one eye lasered. And there was no charge, because the company was doing FDA trials, and needed guinea pigs! We also recommended Summit to our subscribers. Profit in that one, 443%. Life is full of opportunities like these, typically as small companies offer the masses something that makes life better. Hansen Natural, for example, was a huge winner for investors who followed our advice in 2004-2006 as energy drinks took the country by storm. I'm not a user--I haven't even drunk coffee in more than 20 years--but I can appreciate that millions of young people value the burst of energy they get from these elixirs. Today I'm excited about alternative energy, especially solar companies, which are sporting triple-digit revenue and earnings gains, and are struggling to keep up with booming demand.  I'm excited about fast-growing companies in China, which is growing GDP at an 8% rate and is still under-owned, and under-respected, by Americans.  And I'm excited about several companies benefiting from the continuing expansion of functionality in the communications business, particularly as used in mobile phones and other portable devices. Because there's another factor that made those stocks named above great investments, and it's this: The companies were viewed with great skepticism at the time. In fact, friends and co-workers who heard about our plans to have our eyes lasered worried that the procedure would render us blind! So I want to show you how to think contrarily, to consider that the common wisdom is not so wise at all. This is not a new idea. The dean of this line of thinking--at least as it relates to investments--was Humphrey Neill, who in 1954 published The Art of Contrary Thinking. In it, he expounded at length on the idea that "When everyone thinks alike, everyone is likely to be wrong." A recent case in point: the mortgage industry. For all of my life, I've heard people say, "You can't go wrong with real estate." And for decades, that was true. But when I saw the cheapest house here in Salem selling at $300,000, and when I read about the no-money-down and no-interest mortgages that were being made available to borrowers who years ago would have been laughed out of the bank, I knew the end of that housing/mortgage uptrend was near. The investing rule says, "When the last buyer has bought, the trend will end." And so it has. In addition to the logic such as that about contrary investing, I also want to share with you some logic that comes from optimistic thinking. And this is important. Every day of your life, you can watch the TV news, read the newspaper, check Google News, and learn what's wrong with America, and with the world. From war to global warming, from immigration to social security, it's all too easy to succumb to the belief that life just isn't fair, or even worse, to fear that sometime in the future, there will come a time "when it all falls apart," to quote my dear sister-in-law, who is steeped in the values of academia. Well, I can promise you that the world won't all fall apart, literally or figuratively. Every seer who has ever predicted that has been wrong, and I'm confident they will continue to be wrong. And this is no Pollyanna-ish blind faith. It's confidence in the ability of man to continue to make the world a better place! And for beliefs here, I give credit to both my father, Carlton Lutts, the founder of Cabot Heritage Corporation, and the most optimistic man I ever met, the philanthropist Sir John Templeton. He didn't start out as a Sir, of course. He started as a poor, but very intelligent, boy in Tennessee. He got to be a philanthropist by ranking tops in his class in high school, tops in his class at Yale, earning an M.A. in law at Oxford as a Rhodes Scholar, entering the investment business, and by buying stocks when they were down, and selling when they were up. When war began in Europe in 1939, he borrowed money to buy 100 shares in each of 104 companies selling at $1 a share or less, including 34 companies that were in bankruptcy. Only four turned out to be worthless, and he turned large profits on the others after holding each for an average of four years. For Sir John, optimism paid off very well. And this is partly because he has a long-term perspective. He points out simply how much progress humans have made in science and medicine and technology and human rights in the past hundred years and suggests we imagine where a similar century of progress will take us. This sets me, for example, to thinking about genetic medicine, about nanotechnology, about the ongoing revolution in computing and communications enabled by Moore's Law, and about the incredible resources being unleashed in the form of human capital in China and India. So in Cabot Wealth Advisory you'll find a strain of optimism that may seem, at times, to be out of touch with the reality you see on TV. But to me TV--in fact, much of today's digital media torrent--is terribly shortsighted. So I want to share with you the vision that wealth is ahead for all of us who have the vision to see beyond the common wisdom. Not all my topics will bear directly on the market. Sometimes I'll mention my family or my dog. Did you know that dogs bring more happiness into people's lives than steady relationships and job satisfaction? But even when I stray, I'll try to tie it into an investing theme. I also promise you a frank look at the trends of the stock market, illuminated by a lifetime of study of market psychology. It's well known, for example, that the man-on-the-street feels bullish when the market has been up for six months, but can easily come up with a dozen reasons not to invest when the market has been down for six months. My goal is to help you look beyond your own feelings to discover the real risk/reward ratio in the market. There's more of course, including a deep trust of free markets, an attraction to excellent, innovative management, and a soft spot for companies with fat profit margins. But this letter's gone on long enough, so I'll save these ideas for future letters, Yours in pursuit of wisdom and wealth,   Timothy Lutts Publisher P.S. Are you new to investing and unsure of where to begin? Cabot can help. Cabot Stock of the Month presents one stock per month, the best for current market conditions selected from all the stocks featured in Cabot Market Letter, Cabot China & Emerging Markets Report, Cabot Top Ten Weekly, Cabot Green Investor and Cabot Benjamin Graham Value Letter. Cabot Stock of the Month allows you to sample all we have to offer and find the investing system that's right for you, while building a solid, diversified portfolio. To get started, simply click here . --- Cabot Wealth Advisory, a free five-times weekly email service brought to you by the Cabot family of investment newsletters. Click here to learn more or subscribe. Having trouble receiving your Cabot Wealth Advisory?  You can ensure its arrival in your mailbox by clicking here. To learn more about Tim Lutts, visit our site. Our writers and contributors welcome your questions and comments. If you have a particular area of expertise you'd like to share insight on, we'd love to hear it. Simply reply to this e-mail with the word 'Question' or 'Comment' in the subject of your reply. The reply address is not for issues regarding customer service ... you may or may not receive a reply. If we include any of your comments, we'll credit you, of course. If you wish to remain anonymous, we'll protect your privacy. For customer service issues, you can email us at customerservice@cabotwealth.com Visit our blog, the Iconoclast Investor. Follow us on twitter. --- Please note: We sent this e-mail to: IGNOBLE.EXPERIMENT@ARCONATI.US because you subscribed to this service. To end your Cabot Wealth Advisory e-mail subscription, visit this address: http://mail.cabot-online.com/u?id=22992867.55634fafdb8794cda9910ce38e017fdd&o=1153811&l=cwa-eletter To cancel by mail or for any other subscription issues, write us at: Cabot Heritage Corporation P.O. Box 2049 176 North Street Salem, MA 01970 --- ALL CONTENTS OF THIS EMAIL ARE COPYRIGHT 2011 BY CABOT HERITAGE CORPORATION. ALL RIGHTS RESERVED: REPRODUCING ANY PART OF THIS DOCUMENT IS PROHIBITED WITHOUT THE EXPRESS WRITTEN CONSENT OF CABOT HERITAGE CORPORATION. Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to five years in prison and $250,000 in fines. LEGAL DISCLAIMER:  Neither Cabot Heritage Corporation nor its employees are compensated in any way by the companies whose stocks we recommend.  We may or may not buy and sell securities mentioned. Sources of information are believed to be reliable, but they are in no way guaranteed to be complete or without error. Recommendations, opinions or suggestions are given with the understanding that readers acting on information assume all risks involved.