Succession Plan Announcement

Dear Friends,

 

It was November of 1983 when I set out to start a new company called Cabot Money Management, Inc. I was 27 years old and only a few years out of receiving my MBA from University of Massachusetts in Amherst. Like a great many people, I followed in my Dad’s footsteps (Carlton G. Lutts) and entered the investment business. Thirty-four years later I find myself thinking about the coming years and developing plans for the next phase of growth for Cabot Wealth Management, Inc.

After considerable research and thought, I have decided to begin a Succession Phase that will take ten years or longer, but will insure the company will long outlive me and will continue to thrive and prosper in the coming years. Effective July 1, 2017, I have sold 30% of Cabot Wealth Management, Inc. to the three senior principals of the firm: Jim Gasparello, Greg Stevens and Sonia Ernst. I continue to be the primary shareholder and will own 70% of the shares and will continue to work actively in the business as I have done for 34 years; however, we have begun a process of transition to the next generation of leaders.

I selected these three individuals because they are all very competent, hardworking, honest people who care deeply about our clients and about providing quality services for them. I am thrilled to now call them my partners in business ownership. For those of you who do not know, Jim Gasparello has had the longest tenure with the firm— more than 21 years, while Sonia Ernst has been running our operations and trading team for more than 17 years and Greg Stevens has been with the firm more than 13 years. During this time, they have all demonstrated extraordinary skill, talent, good judgement and a strong desire to help clients achieve their goals. Jim and Greg work with many of our clients on a regular basis and Jim supervises the Wealth Management team. Greg acts as the Compliance Officer of the firm and helps many clients with more complex retirement and planning cases. Sonia is the firm’s ace operations expert who has lead the firm’s trading and operations team quite skillfully for many years.

We do not expect to make any significant changes to the company or our services in the near term; however, I do expect the next generation of leaders may bring new and better ideas than I have had over the years. I can assure you I will be open-minded enough to listen and act on all of the great ideas. I want you all to know I enjoy our investment research work in the firm a great deal and will continue to research and explore new ways to grow our clients’ wealth. I expect to continue my regular emerging markets travels and will continue to lead the firm’s investment team for many years. When you see Jim, Greg, and Sonia please congratulate them on their new Shareholder title and wish them luck as they undertake new challenges and opportunities in the coming years.

We take our mission of preserving and building your family’s wealth seriously. We appreciate that you’ve selected the Cabot team for this important job. Happy summer!

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