Turnaround Investing Blog

George Putnam, one of the country's leading turnaround and distressed investing professionals, shares his timely insight on the economy and turnaround investing opportunities.

2015 Sale Recommendations Gain 69%

Dow Jones' Hulbert Financial Digest (HFD), which monitors the performance of nearly 200 investment newsletters, recently reported that as of June 30, 2015, our 15-year annualized return was 12.3%--making The Turnaround Letter the #1 performing newsletter for that period with gains more than 5X higher than the S&P's 2.2%. The Turnaround Letter's consistent performance rankings are particularly gratifying given the longevity of our turnaround investing advice. HFD's Mark Hulbert notes, "...[T]he large majority of the newsletters we were tracking in 1980 are no longer even published." 

Returning our focus to the here and now, this year's closed-out purchase recommendations offer a more current illustration of the extraordinary profit potential to be found with The Turnaround Letter's approach. As the chart below reflects, 10 of 2015's 12 sale recommendations have seen profits. Four of those stocks--GLW, WEN, FCH and BLDR--enjoyed total returns of 100% or higher, and our readers locked in an average gain of 69% with this year's closed out stock picks.

2015 Sale Recommendations

2015 stock profit


It is also of interest to note that 2015's closed out stocks were held for an average of 4-1/2 years, which is consistent with The Turnaround Letter's tried-and-true strategy. Because genuine turnarounds often take longer than you might expect, patience is especially important in this type of investing. The reason for this is simple: When a company is experiencing financial distress, its stocks, bonds and other securities typically experience a significant price drop. HFD discusses this very phenomena: "That's because almost all investors pull money out of the market--and invest money back in the market--at inopportune times. This simply is a function of human nature...."

Of course, we contrarians know that when the herd bails out, that is often the perfect time to buy in! The Turnaround Letter's nearly 30-year track record of market-beating results demonstrates the validity of this strategy. Learn more about our contrarian investment philosophy and The Turnaround Letter's closed out purchase recommendations.

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Turnaround Investing Blog

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Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


What Last Year's Top Stock Pickers Are Buying in 2018


This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.


George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."