An INTRODUCTION

Founded by John “Joe” Terril in 1979, Terril & Company is an independent wealth management company that derives 100% of its revenue from client fees and 0% from commissions tied to the sale or purchase of securities.

The investments Terril & Co. makes for the high net worth individuals, trusts and private/corporate retirement plans it serves are made solely on their potential to produce positive, long-term returns for clients.

The primary sources of new business for the company remain personal referrals from satisfied clients and third-party professionals. The staff of Terril & Co. is gratified that the customer experience it strives to create continues to produce unsolicited endorsements.

Assets under management

Clients in 33 STATES
Clients in 33 states

Terril & Co. APPROACH

  • Philosophy
  • Team
  • Client Service
  • Fee Scale
  • Sample Quarterly Report
  • Fundamentals
  • Value or Growth
  • Decisions
  • Annual Return Goal
An Investing Approach
BASED ON FUNDAMENTALS
The approach of Terril & Co. to investing begins with a careful assessment of risk vs. reward. It seeks to manage risk by selecting investments that, in its view, have the long-term potential to return three times the reward for the risk assumed. Terril & Co. investigates all forms of potential investments on behalf of clients – equities and fixed income (domestic and foreign), preferred stocks (convertible and straight), commodities, exchange traded funds (ETFs), precious metals, MLPs and GPs of exchange-listed partnerships in energy infrastructure trusts, real estate investment trusts (REITs), venture capital and other private placements.
Value or Growth:
SEEKING A CATALYST
Investing on Wall Street is often trend-driven. Many times, the “follow the leader” mentality leads investors (including professional money managers) to pay too high a price when buying or to sell in a panic. Consequently, the most frequent outcome of following “group think” is investment underperformance.
At Terril & Co., the opposite is true. Joe Terril and his investment staff constantly hunt for investments with characteristics or catalysts not appreciated by most investors. Perhaps earnings growth is not accurately factored into the price, or the asset value and cash generating potential of an investment is being underestimated. In another case, the dissection of a balance sheet may reveal an asset with hidden value.
As a long-term investor (usually three years or more) Terril & Co. is willing to wait until the positive, long-term fundamentals of an out-of-favor investment surface. Its fundamental approach to investing looks for change – be it in the economy, technology or in interest rates – that will boost market value. For instance, a company may need more time to improve its cash flow or to grow market share. Or, a company may have “hidden” assets that need time to emerge and be factored by the market. Terril seeks to capitalize on special situations – but only at the proper price. Until the level of risk reaches its investment threshold, Terril & Co. utilizes short-term liquidity investments to produce income and protect principal.
Decisions Based On
FACTS, NOT EMOTION
Terril & Co. believes that discipline – or more precisely, the courage to invest apart from “the crowd” – is key to its past and future investment success. Too often, professional money managers become enamored with investments that temporarily top the popularity charts.
Why?
First, most people are susceptible to herd mentality. It’s much easier to buy the investments that everyone else is buying. Second, money managers know that being wrong with “the crowd” generally won’t cause clients to dismiss them. If they are wrong, alone, it may be a different story. Third, individuals chronically and grossly underestimate investment risk. In bull markets, they are drawn to buy more of what is already high in price. Conversely, in bear markets or with out-of-favor investments, they find it difficult to summon up the courage to buy what is low in price.
The firm’s disciplined approach removes emotion from the investment equation. It has learned that excellent long-term investments are often hidden from “the crowd.” Experience has taught Terril to buy only when the price reaches its threshold – which can lead it to being “under-invested” in markets that it believes are too richly priced. Terril & Co.’s independence also frees it to sell investments when others fear being underinvested. Terril concentrates on consistently earning solid rates of return in both bull and bear markets, recognizing that the ability to steadily compound earnings over the long term is a powerful wealth generator for clients.
The Annual
RETURN GOAL
Terril & Co. sets an absolute – not relative – annual return goal. This mindset is in sharp contrast to traditional index-driven money managers who in a year when the S&P 500 declines 23% find it acceptable to report an 18% loss to clients.
Consistent, positive performance is Terril’s goal. Its benchmark is to generate an annual rate of return 3% to 5% greater than the sum of inflation, taxes and fees. Wealth managers who achieve this level of performance over the long term exceed their peers.
  • portrait of Joe Terril
    Joe Terril
    Founder and President
    joe@terrilco.com
    BIO
  • portrait of David Carter
    David Carter
    Senior Portfolio Manager
    dave@terrilco.com
    BIO
  • portrait of Tricia Warner
    Tricia Warner
    Research Assistant
    tricia@terrilco.com
    BIO
  • portrait of Brian Curtis
    Brian Curtis
    Chief Information Officer
    briancurtis@terrilco.com
    BIO
  • portrait of Max Schmitz
    Max Schmitz
    Associate
    mschmitz@terrilco.com
    BIO
  • portrait of Cindy Koehler
    Cindy Koehler
    Associate
    cindykoehler@terrilco.com
    BIO
  • portrait of Jie Fan
    Jie Fan
    Associate
    jiefan@terrilco.com
    BIO
Each Account
INDIVIDUALLY MANAGED
Terril & Co. understands that clients have singular goals for growth and income, varying tax situations and different thresholds for investment risk. So, it manages all accounts individually. It does not run common funds.
Person-to-Person
SERVICE
Personal service is a trademark of Terril & Co. Fellow human beings answer the phone and interact with clients. Clients are known by name. Meetings between clients and their Terril contact are encouraged. Also, when necessary, Terril & Co. professionals travel to the venue of choice of clients who live outside of metro St. Louis.
FEE SCALE
Market Value of Managed Assets
Annual Fee as a Percent of Managed Assets
Up to $1 Million
1.0%
$1 million to $3 million*
0.75%
$3 million to $5 million
0.6%
$5 million and above
0.5%
  • Quarterly Report Summary
  • Sample Quarterly Report
  • Five Year Sample
QUARTERLY REPORTS
Easy to Understand and Informative
All clients receive a detailed quarterly portfolio update that is clear and concise.

Shared are...
  1. Current total value of assets in portfolio
  2. Current asset allocation (expressed as a percentage of total portfolio)
  3. Bond call/put information and maturities
  4. Accrued dividends and interest
  5. Deposits and withdrawals made during quarter
  6. Portfolio gain or loss during the quarter (expressed in dollars)
  7. Five-year history of quarterly rates of return (deposits and withdrawals time-weighted)
  8. Annual rate of return (after four quarters)
Sample
QUARTERLY REPORT
ABRAHAM LINCOLN FAMILY TRUST *
Quarter Ending December 31, 2016
Equities 39.87%
500 Biogen Inc. 130,605
2,000 Bristol-Myers Squibb Co. 116,880
2,200 Citigroup Inc. 130,746
4,000 Plains GP Holdings L.P. 138,720
6,000 Bank of America Corporation 132,600
10,000 ClearBridge Energy MLP Opportunity Fund 131,100
Taxable Fixed Income 38.49%
25,000 Aberdeen Asia-Pacific Income Fund 115,750
3,500 Ally A FLT 6.4022% 88,900
3,800 Barclays Bank PLC 7.1% 96,444
250 State Street Cap Trust IV Pfd FLT 1.96344% 221,250
150,000 Int'l Lease Fin FLT 4.67% 12/21/2065 131,250
100,000 United Technologoies Corp 1.778% 05/04/2018 100,000
Tax-Free Fixed Income 5.71%
95,000 Chicago Water Rev 5.25% 12/1/2032 111,815
Other 3.09%
50 Ounces Gold 60,428
Cash Equivalents 12.85%
75,000 Columbus OH Swr Rev 5.0% 12/1/2017 77,363
Bank Trust Department Money Market 171,865
Accrued Dividends Earned 875
Accrued Interest Earned 722
Accrued Tax-Free Interest Earned 728

CURRENT TOTAL $1,958,041

Deposit 12/04/2016 $3,000
Balance 9/30/2016 $1,846,594
Gains from Investment** $108,447
*Abraham Lincoln Family Trust is a fictitious name being used to conceal the identity of an actual client. The portfolio composition is representative of a typical “balanced” account managed by Terril & Co.
** Gain or loss from investment is net of any fees and includes the reinvestment of earnings.
Five Year Performance
REVIEW BY QUARTERS
Abraham Lincoln Family Trust ^
December 31, 2016
Quarter Ending: 2012 2013 2014 2015 2016
March 6.79% * 6.86% * 2.55% * 1.20% * -4.38% *
June -1.78% * 1.66% * 4.81% * 0.91% * 2.48% *
September 4.50% * 0.50% * 0.95% * -7.37% * 4.79% *
December 1.19% * 3.91% * -2.31% * -1.05% * 5.87% *
Annual 10.91% * 13.45% * 6.00% * -6.40% * 8.71% *
First performance reported March 31, 1988.
* Taxable Equivalent
2011 -1.19% * 2006 9.33% * 2001 8.56% * 1996 7.02% * 1991 20.55%*
2010 17.06% * 2005 1.56% * 2000 23.88% * 1995 13.90% * 1990 8.04%*
2009 23.55% * 2004 2.41% * 1999 0.56% * 1994 0.36% * 1989 16.36%*
2008 -1.42% * 2003 15.11% * 1998 -1.65% * 1993 4.08% * 1988 5.05% *
2007 5.65% * 2002 3.21% * 1997 13.76% * 1992 9.93% *

^ Abraham Lincoln Family Trust is a fictitious name being used to conceal the identity of an actual client. The portfolio composition is representative of a typical “balanced” account managed by Terril & Co.

** The above performance are the actual results of a $5-$10 million retirement plan under our management, is net of any fees and includes reinvestment of earnings, and is managed with a balanced investment objective; results were achieved with the following asset ranges: Equities 0-50%; Fixed Income 15-95%; Cash Equivalents 0-80%; and Other 0-10%. We believe the above to be indicative of our average historical results. However, such results are not guaranteed. Future results may be materially different. It is possible for accounts to lose money.
Current OUTLOOK
  • In Print
  • On Video
Current Outlook

I am not sure if we are in the bottom of the ninth inning with two outs or perhaps just the eighth inning. Regardless, the end of the crazy valuations for high-tech stocks is close to over. Many of the current popular mutual funds and ETF’s are filled with potential tech-wreck stocks. They are probably accidents waiting to happen. As inflation and interest rates move up, bonds and stocks will suffer a severe correction.

There are times in investing when you need to get out of the way of the investing public. This is one of them. The investing public includes many professional money managers. Greed takes over and they do what they think is astute investing. It is not astute, it is just momentum chasing. Everyone appears to be making money and they want in. When I see otherwise conservative senior citizens, anxious to buy high valuation stocks based on the expectation of the price continuing to go up, it tells me we are close to the end. Currently the public appears fearless. Many current investors have never seen a bear market or its results. Charles Schwab reports new accounts are at a record high and are at levels not seen since the dot.com boom of the late nineties. Bank of America’s wealth management division reports a recent survey of high net worth clients finds cash balances at an all-time low of 10.4%. Machines are trading accounts based on moving averages and computer programs rather than fundamentals. ETF funds continue to attract large amounts of capital without the investors knowing how the fund works. Forty-one years of experience in the investment field tells me all the above is not healthy for the investment markets.

Interest rates set the capitalization rates for stocks. The higher the interest rate the lower the valuation put on stock earnings. Inflation rates help to set the general level of interest rates. Both inflation and interest rates are currently moving higher albeit at a slow pace. The true level of interest rates is being artificially held down by the Central Bank of Europe. When this manipulation ends, the markets will determine the true level for interest rates on 10-year German, Spanish, Italian and French bonds. The new level will be significantly higher than today. This will also move interest rates up in the U.S. as world buyers slow their purchases of U.S. bonds in favor of the much higher rates in Europe. This is before the U.S. Federal Reserve Bank begins to unwind their massive bond buying program. The Fed is on record as saying they will begin in the fall of this year. This will only put additional pressure on interest rates to move higher.

Three stocks to remember from the early seventies are:

Polaroid. Disruptive technology with an instant camera that would revolutionize our daily lives. Stock fell 91% when the obvious came forward. Great invention but, didn’t change daily lives. Everyone seemed to buy one then moved on to something else.

Xerox. Disruptive technology. Fantastic copying machines that changed every day work in the office. Put makers of carbon paper out of business and some typewriter firms. Stock fell 71% when customers stopped buying upgrades. The second and third generation copying machines clients purchased, were good enough for them. They had no desire to spend the money to buy another new one. Japanese firms also entered the market with quality machines at cheaper prices.

Avon. Disruptive technology. The first king of “home delivery”. What a great concept. Present the product so people can select items from the comfort of their home. No need to go to a store. Your merchandise is delivered to your house. Avon was going to put all stores out of business as they expanded to more and more products. Stock fell 86% from its high when consumers tired of the service and went back to shopping in the store.

(Years later this same “home delivery” story was repeated when the stock price of “The Home Shopping Network” soared. The common thinking of the day was consumers would sit in the comfort of their home and buy all types of products as presented on TV. Best part of the story was they received home delivery. No need to go to the store. Sometime later the stock price crashed. Turns out HSN had trouble making money doing home delivery on average products. They needed high margin products to make money, namely jewelry. Consumer habits also changed and for most consumers buying at home lost its appeal.)

The stock market is up over 15% for 2017 when the high-flying tech stocks are included. Without that group, the market is up approximately 5%.

The era of super low interest rates encouraging people to buy stocks (TINA. There is no alternative), is about over. We are accelerating our opinion with stock and bond prices at record highs, it is a great time to be cautious and remember that things can sometimes go an unexpected direction.

Outlook on the Economy and World Markets
Investment PICKS
DJI 22,048.70 GVT10YR 2.24 S&P500 2474.02
DJI 22,048.70
GVT10YR 2.24
S&P500 2474.02
  • Liked
  • Disliked
Investments We Like
Money Center Banks: Citigroup Inc. (C); JPMorgan Chase & Co. (JPM); Bank of America (BAC); Wells Fargo & Co. (WFC): The capitalization of large money center banks is the best in history. Profits are setting records in a terrible banking environment. Any pick up in the world economy will only make the profits even higher. Investors can look forward to the banks beginning the process of returning excess capital to the shareholders through cash dividends and stock buybacks.
Investments We Don't
The historic rally in bonds that began in the 1980s is over. As interest rates rise moderately, most bonds will fall in price dramatically. We doubt that bonds will return any positive performance in the next three years. Floating rate securities are an exception to the previous statement. They should perform well.
DJI
S&P
Investments We Like
Investments We Don't


Money Center Banks: Citigroup Inc. (C); JPMorgan Chase & Co. (JPM); Bank of America (BAC); Wells Fargo & Co. (WFC): The capitalization of large money center banks is the best in history. Profits are setting records in a terrible banking environment. Any pick up in the world economy will only make the profits even higher. Investors can look forward to the banks beginning the process of returning excess capital to the shareholders through cash dividends and stock buybacks.
The historic rally in bonds that began in the 1980s is over. As interest rates rise moderately, most bonds will fall in price dramatically. We doubt that bonds will return any positive performance in the next three years. Floating rate securities are an exception to the previous statement. They should perform well.
Terril & Co.
IN THE NEWS
FAQs
  • Asset Custody
  • Asset Withdrawal
  • Quarterly Reports
  • Compensation
  • Video Briefing
Where are my
FINANCIAL ASSETS HELD?
Assets are held in custodial accounts established on behalf of clients at leading banks. The “third-party” structure offers clients maximum protection against investment fraud.
Is there a penalty for withdrawing assets being
MANAGED BY TERRIL & CO.?
No. Clients are free to withdraw assets or to terminate their relationship with Terril & Co. at any time without penalty just as Terril & Co. is free to terminate any client.
How often will I be updated on the
VALUE OF MY PORTFOLIO?
Investment performance reports are issued quarterly. Clients often comment how easy the reports are to understand.
How is
TERRIL & CO. COMPENSATED?
The fee scale shared on our website represents the sole source of compensation received by Terril & Co. As an independent wealth manager, we do not charge or accept commissions of any type contingent on the sale or purchase of securities.
Joe Terril shares investment and business philosophy in this
VIDEO BRIEFING.
an introduction video
Introduction
an introduction video
Our Team
an introduction video
Sample Quarterly Reports
an introduction video
Investment Philosophy
an introduction video
Approach to Service
CONTACT US
By Phone
1.800.767.0344
314.965.0344

314.965.7017 (fax)
By Mail
P.O. Box 31277
St. Louis, MO 63131

10777 Sunset Office Dr.
Suite 317
St. Louis, MO 63127
By Email
For More Information
A Registered Investment Advisor
“Terril & Company” is the operating name for Terril Brothers, Inc., a corporation wholly owned by John “Joe” Terril. The company is a SEC registered investment advisor. Click here to review a copy of that registration.
References
Terril & Co. gladly furnishes references. Third-party referrals account for essentially 100% of our new client growth.
Privacy Policy
Terril & Co. keeps all client communications strictly confidential. Your name, contact information and questions remain private and are only viewed by firm professionals. Click here to review our privacy policy.
CONTACT US
By Phone

1.800.767.0344
314.965.0344

314.965.7017 (fax)
By Mail

P.O. Box 31277
St. Louis, MO 63131

10777 Sunset Office Dr.
Suite 317
St. Louis, MO 63127


A Registered Investment Advisor
“Terril & Company” is the operating name for Terril Brothers, Inc., a corporation wholly owned by John “Joe” Terril. The company is a SEC registered investment advisor. Click here to review a copy of that registration.
References
Terril & Co. gladly furnishes references. Third-party referrals account for essentially 100% of our new client growth.
Your Privacy
Terril & Co. keeps all client communications strictly confidential. Your name, contact information and questions remain private and are only viewed by firm professionals. Click here to review our privacy policy