The Triad Perspective

Triad Investment Management, LLC is a SEC-registered investment adviser based in Newport Beach, California.  We manage portfolios, including retirement and corporate accounts, and provide investment counsel to our select group of clients, which include:
  • Business owners
  • Affluent families and individuals
  • Corporate executives
  • Family offices
  • Endowments and foundations
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The Lemonade Stand
When I was a kid, oh, seven, eight years old, let's just say I wasn't perfect. In many ways.
For instance: our neighbor had several fruit trees in the backyard. With help from a couple of male accomplices, around the same larcenous age, we'd climb the fence and help ourselves to peaches, apples and lemons. That was bad enough. But we'd turn around and sell the bounty. Right out in front of our houses, in plain view for all to see. Not only were we thieves, we were dumb thieves.
We finally got caught one day loading up on the fruit, and after the neighbor dragged us home and our parents scolded us, our days as fruit bandits were over.
I got to thinking about those long-ago childhood days as I mulled over the phrase " turning lemons into lemonade ", or a variant " when life hands you lemons, make lemonade ."

The investing process can also provide us with opportunities to turn lemons into lemonade. When significant market declines occur, as we've seen recently, we look to take advantage of the situation. What does this mean?
First, we believe that the democratic nature of market panics tends to drive most stocks down, and opportunities can be numerous as a result. So, we re-evaluate all of our investment options, both from within our current portfolios as well as from ideas in our investment universe.
We ask ourselves--are there changes we can make to improve our estimated return potential and invest more of the portfolio in high-quality businesses? In markets like these, the answer to both often can be yes.  

It doesn't look pretty at the time as markets are volatile and you're selling a stock that's already declined to buy another stock that's declined. We call this " selling a seventy-cent dollar to buy a fifty-cent dollar. "
This is what we've been doing for the past month or so. The opportunity of broad market downturns is that they let you craft your own tasty version of lemonade with a little extra effort (and without the larceny!) One man's panic can be another man's pleasure.
-John Heldman, CFA

Past performance does not guarantee future results.  Results are presented net of fees and include the reinvestment of all income.  The opinions expressed herein are those of Triad Investment Management, LLC and are subject to change without notice. Consider the investment objectives, risks and expenses before investing. The information in this presentation should not be considered as a recommendation to buy or sell any particular security and should not be considered as investment advice of any kind. You should not assume that any securities discussed in this report are or will be profitable, or that recommendations we make in the future will be profitable or equal the performance of any securities discussed in this presentation. The report is based on data obtained from sources believed to be reliable but is not guaranteed as being accurate and does not purport to be a complete summary of the available data. Recommendations for the past twelve months are available upon request. In addition to clients, partners and employees or their family members may have a position in any securities mentioned herein. Triad Investment Management, LLC is a SEC-registered investment adviser. More information about us is included in our SEC Form ADV Part 2, which is available upon request.  

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