𧡠thread/ In 1939, as WWII was starting, John Templeton was buying US stocks while everyone else sold.
60yrs later in 1999 when everyone was buying, Templeton was short 84 of the most expensive tech stocks.
Below are 6 of Sir John Templetonβs investing principles β¬οΈ
60yrs later in 1999 when everyone was buying, Templeton was short 84 of the most expensive tech stocks.
Below are 6 of Sir John Templetonβs investing principles β¬οΈ
1/ Donβt get let astray by the emotions in investing β We should not be excessively careless and optimistic when we have big profits and excessively pessimistic and cautious when we have big losses.
2/ Beware of your own ignorance β We should do our diligence and really understand what it is we are buying.
3/ Diversify β We should have a well-diversified portfolio across asset classes and countries to protect ourselves from our own fallibility.
4/ Be patient β Sometimes it may take years for our thesis to play out and deliver returns.
5/ Find bargains β The best way for us to find bargains is to study whichever assets have performed most dismally in the past five years and then assess whether the cause of those woes is temporary or permanent.
6/ Donβt chase fads β The best way for us to avoid popular delusions is to focus not just on the future outlook but on value by investigating various valuation measures.
End/ source: price2value.substack.com
Loading suggestions...