Turnaround

A company who has been performingly poor for a long period of time that experiences a reversal in its business.

As Buffett would say, “A good businessman cannot change the fundamentals of a business.” Turnaround situations may occur, but they are difficult and risky to anticipate.

It is important to differentiate from a cyclical company in a cyclical downturn and a company in a longterm decline headed for bankruptcy.