Sir John Templeton. Time-tested principles of the approach Templeton

Sir John Templeton. Time-tested principles of the approach Templeton

Even in the distant 50's, long before it became fashionable global investing, Sir John Templeton was looking favorable for a possible worldwide. By the mid-60s, "Templeton fandz" have invested in Japan. While the Japanese company shares traded at a P / E ratio equal to 4, while U.S. stocks were traded by a factor of 16. "People always ask me where there is a good prospect - he said - but the question is incorrect. The right questionis: where the worst perspektivag? The goal is to find the most depressed prices. The point here in the risk / reward ratio, and the risky strategy has paid off International - investment in the $ 10,000, perfect with it in 1954, after 40 years was worth $ 2.3 million, representing a complex growth rate of 17 percent per annum.

Templeton grew up in rural Tennessee and got so carried away with stories about foreign countries, who told the Christian missionaries who came that he decided to join them. However, after studying at Yale University and then at Oxford as a fellow Rhodes, he realized that was not made for missionary work. "But I also realized - he said - that I have more ability to make money than them. So I decided to devote himself to aid the missionaries." His first big investment realized in 1939 when he bought all the stock exchanges for a hundred mosquitoes every stock, which traded at a price of less than one dollar (the money is borrowed). After keeping them for four years, he has received over 40,000 house. profits. Shortly thereafter, Templeton found a consultant for investment, which wanted to sell its business, and Templeton bought it for 5,000 dollars

Over time, one of his habits was the ascension of joint prayers with the directors, "Templeton Groce Fand" in order to make sound investment decisions. For Templeton, who took British citizenship and elevated to a knighthood in 1987, it was not blasphemy. "I think that all careers are becoming more successful and satisfying if you use spiritual principles," - he said, Templeton believes that spiritual exploration and progress are as important as the research and developments in science. For example, in 1994 he donated to the religious needs of more than $ 10 million in addition to prayer, at the Templeton had a very clear strategy of investment, which he reduced to basic elements of a "time-tested principles approach Templeton."



1. All long-term investors, only one goal - "the maximum total real return after tax."

2. Achieving good results requires a great deal of research and work, and it is much harder than many people believe.

3. It is impossible to achieve outstanding results, if you're not doing something different from most people,

4. Time of the highest pessimism - the best time to buy, and the highest time of optimism - the best time to sell.

5. If we express the "principle of 4" somewhat in other words, the only way to make a better deal in the stock market is to buy what most investors are selling.

6. Buying at a time when others are despondently selling and sell when others are greedily buying requires the greatest fortitude, even when it is assumed the greatest reward.

7. Bear markets are always temporary. Share prices begin to rise when the economic cycle is on the achievement of its foundation at a distance from one to twelve months.

8. If any industry or type of securities have become popular among investors, that popularity is always temporary, and when it ends, it will not return for many more years.

9. Eventually, the stock market indexes fluctuate around the long-term upward trend in earnings per share.

10. In countries where free enterprise profitability index of the stock market hovers around replacement book value of equity index.

11. If you buy the same securities as other people, you will have the same results as the other.

12. Time to buy stocks is when the short-term owners have finished their sales, and the time to sell stocks often happens when short-term owners have finished your purchase.

13. Stock prices fluctuate far more than their cost. Therefore, index funds will never get the best results on overall profitability.

14. Too many investors focus on "long term" and "trends". Therefore, more profit is made by concentrating on value.

15. If you're searching all over the world, you will find more bargains and better deals than working only in one country. In addition, you get the safety of diversification.

16. Fluctuations in stock prices is approximately proportional to the square root of the price.

17. Time to sell any type of asset is when you find a much better deal for his replacement.

18. When any method of selecting stocks becomes popular, switch to unpopular methods. As stated in the "principle of 3", too many investors can spoil any share selection method or any formula for the timing of market entry.

19. Never stick to some long some of the assets or of any one method of selection. Try to stay flexible, objective and skeptical. High long-term results are achieved only a transition from the popular types of securities to the unpopular. The same applies to the methods of selection.

20. Skill factor in choosing plays the biggest role in that part of your investment, relating to common stock.

21. The best results are achieved by an individual, not collective.

22. If you start with a prayer, you can think more clearly and make fewer stupid mistakes.