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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Turkey Time

It's that time of year, again. Time to put the Butterball turkey in the oven and stock up on Pepcid, Prilosec or Nexium acid relief medications. Personally, I'm not a big turkey fan. I'd rather dive into a ribeye or porterhouse steak. But, tradition is tradition. I'll eat the turkey. Just don't ask me to eat the leftovers for the next couple of weeks.
There's another type of turkey that we all know. It's a pejorative form of the word. Slightly contumelious or vituperative. No, I didn't invent those words. Google them.
The turkey I'm referring to is the popular negative usage of the word, as in "that movie was a real turkey." Or, "that politician is a turkey." Actually, most politicians seem to qualify for this label.
Somehow the poor turkey bird obtained its negative reputation by being rather slow, even stupid. Don't ask me why, I haven't interacted with a live turkey in quite a while. Regardless, for most people the name implies a not-so-good label.
In the investment world, turkey means just what you might think. A stinker of an investment. A dog. A white elephant. Animals do get their share of negative word association, don't they?
Now, every investor will eventually invest in a bad idea, a turkey. The key is to limit these bad ideas. Especially if you don't have a widely diversified portfolio, such as the S&P 500 stock index, which unsurprisingly has 500 stocks.
We've had our share of investment mishaps. In some cases, with our more concentrated approach of owning twenty to forty stocks, this has caused more heartburn than we'd like.
The remedy? Unlike with the turkey bird, where antacids can be consumed, the fix we see for the investment turkey is to invest in higher-quality investments, purchased at sensible prices. And, avoiding lower-quality businesses selling at lower valuations. It takes patience, as quality isn't always available at sensible valuations.
But like Thanksgiving, which comes only once a year, we only need one opportunity, as long as we take advantage. The upside, when we're right, should result in fewer turkeys and more swans.

-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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