Terril recognizes that consensus investing based on chasing momentum can work short-term. However, historically, this strategy results in catastrophic losses. Terril searches for investments with characteristics or catalysts not fully appreciated by markets. As a long-term investor (usually for 3 years or more) Terril will hold out-of-favor investments until positive changes reward them with higher prices. While Terril hunts for long-term opportunities, it preserves investor capital in income-producing, liquid, short-term instruments.

Terril believes that its willingness to make disciplined investing decisions apart from “The Crowd” is central to its success. Why? Because many professional money managers chase performance and buy the glamor investments of the day. Psychologically, it is far easier for them to buy what their peers are buying because being wrong with “The Crowd” is more comfortable than being wrong while standing alone.

Many investors – professionals included – are inclined to underestimate investment risk. In bull markets, they are eager to buy more of what is already high in price. They tend to manage to performance benchmarks and are disposed to expand risk boundaries. In bear markets or with out-of-favor assets, their evaluations often fail to reflect the fact that many times, when an investment is low in price, significant financial risk has already been eliminated.