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:
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Let Them Eat Cake (But Not Have It Too)
 
We've all heard the phrase "You can't have your cake and eat it too." Which, when you think about it, seems obvious. Unless it seems confusing. How could I have my cake if I eat it? Let me provide a little history.
 
Way back when, this proverb started out life around the 15 th century as " You can't eat your cake and have it too ." Simple and straightforward. By the 17 th and 18 th century, things got flipped around. Now the common phrase became the less straightforward, more confusing variety: " You can't have your cake and eat it too. "


 
A little bit of additional history. The infamous "Unabomber", one Theodore J. Kaczynski, was finally caught by the F.B.I. when his brother identified Ted's particular use of this phrase in his 35,000 word anarchist manifesto. It seems the Unabomber's mother taught him that the proper form was "You can't eat your cake and have it too." For the record, I agree with the Unabomber.
 
I get to thinking about this phrase when we get temporary stock market declines, such as we've been experiencing for the past three months. It reminds me that we can't have it both ways. If you want the higher returns that come from investing in the stock market over the long-term, you've got to put up with the stomach-churning declines that occasionally occur.
 
We can't expect to "eat" our cake--earning higher returns--while also "having" our cake--avoiding the emotional roller coaster that accompanies market declines.
 
And make no mistake, market declines can be hard emotionally. I've been doing this for over 30 years and it's still no fun. It's way more fun when markets are rising and clients are making money.
 
But the weird thing about market declines is they can prove to be advantageous to your financial health. To paraphrase Warren Buffett: "If you're going to be buying hamburgers-or investing in stocks-then why wouldn't you want the hamburgers occasionally offered at a big discount?"
 
Warren's got a point...though it depends on where you are in your investment/spending lifecycle. When the market declines, stocks can be on sale, and bargains might be plentiful.
 
Even the Unabomber, now serving eight life sentences, would probably agree that you can't eat your cake--causing mayhem--and have it too. Thanks to the F.B.I. And brother David.
-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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