You are here : Homepage : Blogs
Like us on Facebook RSS Feed







Sir John Templeton's 22 Principles for Successful Investing
Investment Strategy | 0 Comments | Sun 21 Jul 2013
Bookmark and Share

Sir John Templeton is a name many in financial markets have heard and learned from. Looking back recently at some writings and videos we feel we can only gain from reminding ourselves of the story and principles of this inspirational investor.

Here is a quick video reminder of his story:

http://www.sirjohntempleton.org/videos.asp

Here are John Templeton's 22 Principles for  Successful Investing:

  1. There is only one long term investment objective, maximum total after tax return.
  2. Success requires study and work. It's harder than you think.
  3. Outperforming the majority of investors requires doing what they are not doing.
  4. Buy when pessimism is at its maximum, sell when optimism is at its maximum.
  5. Therefore, buy what most investors are selling.
  6. Buying when others have despaired, and selling when they are full of hope, takes fortitude.
  7. Bear markets aren't forever. Prices usually turn up a year before the business cycle hits bottom.
  8. Popularity is temporary. When a sector goes out of fashion, it stays out for many years.
  9. In the long run, stock index prices fluctuate around the EPS trend line.
  10. Stock index earnings fluctuate around replacement book value for the stocks in the index.
  11. Buy what other people buy and you will succeed or fail as other people do.
  12. Timing: buy when short term owners have finished selling and sell when they've finished their buying, always opposing the fashion.
  13. Stock prices fluctuate more than values. So stock indexes will never produce the best total return performance.
  14. Focus on value because most investors focus on outlooks and trends.
  15. Invest worldwide.
  16. Stock price fluctuations are proportional to the square root of the price.
  17. Sell when you find a much better bargain to replace what you are selling.
  18. When your method becomes popular, switch to an unpopular method.
  19. Stay flexible. No asset or method is forever.
  20. Stock market investing takes more skill than any other kind of investing.
  21. A person can outperform a committee.
  22. If you begin with prayer, you will think more clearly and make fewer mistakes.

See also:

http://www.tennesseecontrarian.com/resources/



Post a comment

Name :  
 * 
E-mail :  
 * 
Anonymous :  
 
Yes No
Comment :  
 * 
  
Please type in the verification code shown below
Verification :  
 * 
Fields marked with a * are required.

 
 



Keyword : 
 




When we examine the investment case for any company we must think of competitive threats. Amazon is increasingly mentioned as potential competiti ...

Gotham City Research's caped crusader brought down Gowex, a formerly €1.4 billion Spanish company, using superior analysis of publicly available i ...

What is the most sensible way to think about the cost of capital? How should an analyst appraise an investment opportunity? This article steers ...

It seems that acquisitions are ‘in' these days, nowhere more so than in the specialty drug sector. With each deal, excited investors and analysts ...

Having worked in various parts of the investment industry the author has an interesting perspective on the business of investment. His experience ...


Value Investment Institute Chair Gary Connolly and board member John Looby discuss topical issues including: Recent instability in the most stable ...



Forename : 
Surname : 
E-mail : 




 Articles 
 Blogs 



Management
(1)
(2)



Investment Strategy
(31)
(6)



Buffett
(1)
(2)



Book Reviews
(1)
(0)


 Articles 
 Blogs 



January 2015
(1)
(1)



October 2014
(1)
(0)



September 2014
(1)
(0)



February 2014
(1)
(0)



January 2014
(1)
(0)



November 2013
(1)
(0)



October 2013
(1)
(0)



September 2013
(0)
(1)



August 2013
(1)
(0)



July 2013
(0)
(1)



June 2013
(1)
(0)



April 2013
(1)
(0)



March 2013
(1)
(1)



November 2012
(1)
(0)



October 2012
(1)
(1)



August 2012
(1)
(0)



July 2012
(1)
(1)



May 2012
(1)
(1)



March 2012
(1)
(0)



February 2012
(1)
(0)



January 2012
(1)
(1)



December 2011
(1)
(0)



November 2011
(1)
(0)



September 2011
(4)
(1)



April 2011
(1)
(0)



March 2011
(1)
(0)



February 2011
(2)
(0)



January 2011
(5)
(1)



Copyright 2018 Value Investment Institute

Website Terms & Conditions