Today I have a special Question and Answer session with Sheila
Frisch, Cabot's first, and longest tenured, employee, who
currently sits in the role of Vice President of Operations. So in
honor of Cabot Market Letter's 40th year in production, here's a
look back at the company through Sheila's eyes …
How long have you worked at Cabot and what was the subscriber
base when you started?
I began working part-time for Cabot Market Letter as an
administrative assistant in September 1975 … 35 years ago.
We had about 350 subscribers then.
What was the company like then?
I was Carlton Lutts' first employee, besides his family of
course. The business was operated out of his home on
Cabot Farm. Everything was done manually-subscriber records
were on index cards and Elliott stencils. Back then Carlton
picked the stocks, wrote Cabot Market Letter and created the
marketing efforts. There was one telephone (which didn't
ring very often). The hourly fluctuations of the market
were not known.
How has it changed?
How hasn't it changed! We've moved from Cabot Farm to the
North Branch Library building a mile up the road; Carlton retired
a couple of years ago and Tim has taken over. We have 11
publications, 20+ employees and state-of-the-art technology to
help us all get our jobs done. Everything moves at a much
How did the tradition of coffee time start? Game day? [Each day
at Cabot we take a communal break in the middle of the morning
and on Thursdays, we play a game during that time!]
From day one, Carlton insisted we take a break as a group from
our daily routine to relax and refuel … or tell a joke or
two. It has always been a great way to connect with
and share ideas with co-workers. We began playing games
early on-once there were more than two of us.
In an age when many people switch jobs often, why have you chosen
to stay at one company for so long?
The work is challenging and I always felt that I made a valuable
contribution to the success of the company. One big plus in
working for Cabot is the friendly, supportive, almost family-like
atmosphere that Tim carries on today. I don't think you
find that in many companies now.
How has your role at Cabot evolved since you started working
I began as an administrative assistant and have taken on many
responsibilities over the years. The atmosphere at Cabot
has always been one of learning and growing. Educational
reimbursement is valuable benefit offered to employees. As a
result of this opportunity, I earned a BS in Accounting, which
has advanced my career at Cabot.
What are some of your favorite or most vivid Cabot memories?
Oh my favorite memories are the fun things we've done as a group
after reaching a Goal … from a shopping spree at the Mall
to dinner at the Ritz.
What's your favorite part of your job?
I enjoy being part of a great, hardworking team.
Any parting words?
After 35 years, I still enjoy coming to work every day.
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Recently, I read that the number of Internet users will surpass
two billion-or about 30% of the world's population-by the end of
2010. That's according to a new report by the International
In 2010 alone, there will be 226 million new Internet users, with
the majority coming from developed countries. Regionally, 71% of
people in developed countries are online, while only 21% of the
population in developing countries, many of which are emerging
markets, are online. Even more specifically, 65% of Europe is
online, 55% of the Americas, 21.9% of Asia/Pacific regions and
less than 10% of Africa.
That leaves a lot of room for growth!
And nowhere is that growth more evident than in China, where
, that country's leading search engine, has taken off in 2010.
Baidu was first recommended by Cabot China & Emerging Markets
Report in July 2009. This is part of what Editor Paul Goodwin had
to say then:
"Baidu is the dominant Chinese-language search engine in China,
with a market share that hit 65.8% in 2008. (Google was second
with 22% and Chinese rival Sogou was a distant third with 2.9%.
Yahoo! was an even more distant fourth.) It is now the
third-largest search engine in the world. For a company
incorporated in 2000 and limited almost entirely to operations
within a single country, this is a remarkable record.
"Baidu has built its towering advantage over its powerful
competitors by being both imitative and innovative. The imitative
part of the Baidu strategy is its total adoption of Google's paid
keyword search as its revenue model. The company offers most of
its services free of charge, and gets 99% of its revenue from
online marketing services. Earnings, which turned positive in
2004, have been growing at an astonishing rate.
"Baidu's future growth is expected to come from the growth of the
Internet in China. Despite the controls and restrictions demanded
by the Chinese government-mostly aimed at pornography and
politically sensitive topics-the Chinese people are taking
rapidly to life online. China now has more people online than any
other country in the world (221 million in early 2008) and
estimates put the growth rate at 18% per year, with a target of
490 million users by 2012. (We note that that's more Internet
users in China than there are people in the U.S.)"
And things have only gotten better since then. Paul's subscribers
bought the stock at a split-adjusted 32 and currently have
profits of about 250%! You could buy the stock here and hope for
the best, or you could check out
Cabot China & Emerging Markets Report
, the #1 newsletter for the last five years, for details on what
Paul is recommending today.
In this week's Stock Market Analysis Video, Cabot Top Ten Weekly
Editor Michael Cintolo says that the market has tacked on more
gains this week and most leading stocks have come through earning
season so far in fine shape. Stocks discussed include
Las Vegas Sands (
), Google (
), Silver Wheaton (
Watch the Stock Market Analysis Video.
Until next time,
Editor of Cabot Wealth Advisory