One of the greatest investors of all time
John Templeton achieved a 15% annualized return over a period of 38 years
12 quotes from the man who beat the market and what we can learn from each one
// THREAD
John Templeton achieved a 15% annualized return over a period of 38 years
12 quotes from the man who beat the market and what we can learn from each one
// THREAD
1. "Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria."
As a seasoned investor, you see this cycle repeat itself over and over again. No one has been able to predict the beginning or end of these cycles, so you're best off DCA'ing
As a seasoned investor, you see this cycle repeat itself over and over again. No one has been able to predict the beginning or end of these cycles, so you're best off DCA'ing
2. "The four most expensive words in the English language are ‘This time it’s different.’
This is something gambling addicts tell themselves. It's also something investors say when acting on emotion.
Neither of these scenarios is good for your long-term investment returns
This is something gambling addicts tell themselves. It's also something investors say when acting on emotion.
Neither of these scenarios is good for your long-term investment returns
3. "Don’t panic. The time to sell is before the crash, not after."
Don't panic sell. If the company you just bought is dragged down with a wider market sell-off, take the opportunity to lower your average. Selling when the fundamentals are intact is pointless!
Don't panic sell. If the company you just bought is dragged down with a wider market sell-off, take the opportunity to lower your average. Selling when the fundamentals are intact is pointless!
4. "To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward."
This guy knows. Averaging 15%/year is no easy task. Take note!
This guy knows. Averaging 15%/year is no easy task. Take note!
5. "If you want to become really wealthy, you must have your money work for you."
If you keep cash balances that are not needed for anything in the immediate future in a savings account, inflation is slowly eating away at it. Invest and put that money to work!
If you keep cash balances that are not needed for anything in the immediate future in a savings account, inflation is slowly eating away at it. Invest and put that money to work!
6. "Defer pleasure until the job is done."
Delayed gratification is a mindset you must adopt if you want to achieve long-term wealth. Chasing short term dopamine hits with materialistic purchases will get you nowhere.
Delayed gratification is a mindset you must adopt if you want to achieve long-term wealth. Chasing short term dopamine hits with materialistic purchases will get you nowhere.
7. "If you earn a dollar and spend a dollar ten, you’ll be a failure. But if you earn a dollar and spend ninety cents, you’re on the road to success!"
Personal finance 101 - Earn more. Spend less. Invest the difference
Personal finance 101 - Earn more. Spend less. Invest the difference
8. "A cocksure approach to investing will lead, probably sooner than later, to disappointment if not outright disaster."
Ego will kill your returns. A wise investor accepts that he will never have all the answers but pursues them anyway.
Ego will kill your returns. A wise investor accepts that he will never have all the answers but pursues them anyway.
9. "Focus on value because most investors focus on outlooks and trends."
Ultimately, the stock price of a business goes up due to the strength of its fundamentals. Trying to predict price movements based on trends will take up more time and likely lead to lower returns.
Ultimately, the stock price of a business goes up due to the strength of its fundamentals. Trying to predict price movements based on trends will take up more time and likely lead to lower returns.
10. "The best time to invest is when you have money."
As soon as you get it, invest a minimum of 20%. Figure out how to live on the rest. After, find ways to increase that income so you can invest more.
This is how enormous wealth is achieved.
As soon as you get it, invest a minimum of 20%. Figure out how to live on the rest. After, find ways to increase that income so you can invest more.
This is how enormous wealth is achieved.
11. "The only reason to sell them a stock now is to buy other, more attractive stocks. If you can’t find more attractive stocks, hold on to what you have."
An investing rule I live buy. Don't sell unless the fundamentals deteriorate or there are stocks with greater potential.
An investing rule I live buy. Don't sell unless the fundamentals deteriorate or there are stocks with greater potential.
12. "Forgive yourself for your errors. Don’t become discouraged, and certainly don’t try to recoup your losses by taking bigger risks."
Acknowledge & learn from your mistakes. To not do this is doing yourself a disservice.
Acknowledge & learn from your mistakes. To not do this is doing yourself a disservice.
I've spent years studying the traits of the most successful investors of the last century, implementing the learnings into my own successful investment strategy.
If you enjoyed this thread, please:
- Retweet the original tweet
- Follow @FiSavvy for more
If you enjoyed this thread, please:
- Retweet the original tweet
- Follow @FiSavvy for more
Loading suggestions...