Paul Codman Cabot
Paul Codman Cabot | |
|---|---|
| Born | Template:Birth date Brookline, Massachusetts, U.S. |
| Died | September 1, 1994 (aged 95) Needham, Massachusetts, U.S. |
| Occupation(s) | Investment executive, university treasurer |
| Known for | Chairman and CEO of State Street Investment Corporation; Treasurer of Harvard University |
Paul Codman Cabot (October 21, 1898 – September 1, 1994) was a prominent American executive, serving as chairman and chief executive of the State Street Investment Corporation, as well as treasurer at Harvard University.
Early life
Born into the distinguished Cabot family and part of the Boston Brahmin social class, Cabot hailed from Brookline, Massachusetts. His father, Henry Bromfield Cabot, practiced law and engaged in investment activities. He was the brother of Charles Codman Cabot. Cabot completed his education with honors at Harvard College and later graduated from Harvard Business School.
Career
Cabot established the State Street Investment Corporation in 1924, marking it as the second open-end mutual fund to be legally incorporated and the first to begin operations. He was a pioneer in fundamental equity analysis, emphasizing direct management interviews and prioritizing price-earnings ratios rather than dividend yields for valuation purposes. These methodological advances significantly enhanced investment outcomes over many years. During the 1920s, he uncovered questionable practices within other investment funds, which elevated his influence and contributed to shaping key New Deal financial regulations such as the Revenue Act of 1936 and the Investment Company Act of 1940.
From 1948 until 1965, Cabot served as Harvard University's treasurer, during which time he managed the endowment’s expansion from $177 million to more than $1 billion. Although he stepped down as State Street’s CEO in 1958, he continued to hold the position of chairman.
Personal life
In September 1924, Cabot wed Virginia Converse, daughter of the noted American composer Frederick S. Converse. Together, they had five children: Paul C. Cabot Jr., Edmund C. Cabot, Frederick C. Cabot, Virginia Cabot, and Elizabeth Cabot.
Cabot passed away on September 1, 1994, at Deaconess-Glover Hospital located in Needham.
Further reading
- Passion for Reality: The Extraordinary Life of the Investing Pioneer Paul Cabot by Michael R. Yogg (2014)