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