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WISDOM OF: John Templeton

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  • WISDOM OF: John Templeton

    Another great investor I admire is the late John Templeton http://en.wikipedia.org/wiki/John_Templeton who pioneered global investing. Unlike Warren Buffet's looking after all your eggs in one basket, John Templeton advocated diversification.

  • #2
    Video - How to Succeed in Tough Times

    The following 40-minute interview was done by Tony Robbins, probably in the '90s. I believe many of his ideas apply equally well in property investment.

    Here are the major points.
    • For many years, John Templeton saved 50% of income to use for investment.
    • Diversify into different markets.
    • Save and then use savings to buy bargains.
    • Buy and hold assets through 2 or 3 cycles to accumulate wealth.
    • "Good fortune tends to come to the person who is prepared ahead of time. If you do hard work, study, common sense, mathematical comparison, then when a bargain comes along, you'll recognize it to be a bargain."
    • Sell an asset only when you find another asset which is 50% better bargain.
    • Do not expect to be correct in decisions more than two-third of the time.
    • "You find the bargains at the point of maximum pessimism." Go against the fashion.
    • "Bear markets start on the time of pessimism. They rise on the time of skepticism. They mature on the time of optimism. And they end on the time of euphonium."
    • "We all tend to become what we think. If we think we can, we can. If we think we can't, we can't."

    Sir John Templeton - How to Succeed in Tough Times #1

    From: http://www.youtube.com/watch?v=JydMEkz_d18

    Sir John Templeton - How to Succeed in Tough Times #2

    From: http://www.youtube.com/watch?v=xOnE-noIjig

    Sir John Templeton - How to Succeed in Tough Times #3

    From: http://www.youtube.com/watch?v=zmUbl3MzVNk

    Sir John Templeton - How to Succeed in Tough Times #4

    From: http://www.youtube.com/watch?v=r98DNHw7N-Y

    Sir John Templeton - How to Succeed in Tough Times #5

    From: http://www.youtube.com/watch?v=lGbDguKWrlY


    • #3
      Video - After the Crash

      This round table discussion was probably taped right after the '87 crash.

      Here are the major points.
      • "If you never buy investments with borrowed money, you can always be comfortable."
      • Get in on the ground floor of the next bull market.
      • Be patient and be a long term investor.
      • Be prepared both financially and psychologically to live through cycles.

      After the Crash - Part 1 - Wall Street Week Oct. 23, 1987

      From: http://www.youtube.com/watch?v=XFn1G2goDQw

      After the Crash - Part 2 - Wall Street Week Oct. 23, 1987

      From: http://www.youtube.com/watch?v=Lm_4j-_Dnwc

      After the Crash - Part 3 - Wall Street Week Oct. 23, 1987

      From: http://www.youtube.com/watch?v=o_fxEoF8Vl8


      • #4
        "Bear markets start on the time of pessimism. They rise on the time of skepticism. They mature on the time of optimism. And they end on the time of euphonium."
        He probably meant "bull markets" not "bear markets."


        • #5
          Nope I think he meant Bear Fudosan. I think he is being "deep" though, trying to be a little Buddha - ish


          • #6
            Video: An interview with Sir John Templeton

            This interview was conducted by Charlie Rose in 1997. Here are the major points.

            • While at Oxford in the 30s, John Templeton discovered that Americans were not aware of opportunities in global investing. This one idea formed the backbone of his business which lasted many decades.
            • Though not bright, he worked hard.
            • After the war he bought many Japanese stocks at rock bottom prices because everybody was selling.
            • "We invest more and more wherever we can find bargains. One of our basic principle in investing is to buy wherever things are at the lowest price, and you can only get things at the lowest price if someone is selling. Nothing else pushes the shares down except when people are selling."
            • America going into the war presented John Templeton with an enormous opportunity (dying companies coming back to life) where he bought many below $1 shares (37 of them in bankruptcy) and made a fortunate.
            • Always buy bargains -- the biggest factor determining bargain being earning. Most of his shares were bought at about 5 times of earning (in property speak, 20% cap).
            • Real wealth is not in money. "To be a giver gives you permanent joy."

            Source: http://www.charlierose.com/view/interview/5555


            • #7
              Wow 5 times earnings. You could really build wealth with those sorts of returns. Compare that to the say 7% we get these days!

              Squadly dinky do!


              • #8
                He's talking about buying businesses though davo and I know a few businesses you can buy for that these days and less (4times).
                In about a year there will be some that you can buy for 2 times earnings if NZ follows what happened in Oz.


                • #9
                  So what happened in Aussie Terry? Do you mean the sharemarket dropped further than ours? Or did private businesses become more affordable for some reasons?

                  Squadly dinky do!


                  • #10
                    Video: John Templeton from 1989

                    In this interview done in 1989, John Templeton reiterates that bargains are found only when most investors are trying to sell. For bargains in 1989, he likes New Zealand because the NZ market has been severely depressed yet the long term outlook is excellent due to rich resources and intelligent people. (Note: the quality of this video is quite poor.)

                    From: http://www.youtube.com/watch?v=AEmsvLIT0ks


                    • #11
                      Video: John Templeton 1990

                      In this 1990 interview, John Templeton predicts the rise of China in the next century, as well as continuing inflation and how to deal with it using investments.

                      "Modern inflation is a problem. It's a problem because of human nature. All over the world people spend too much, and they borrow too much. Nations borrow too much, and the result in all history is going be more inflation... There may be some good years when we may have as little as 1 or 2 percent of inflation, or other years it may go above 15% as it did once in America . Over the long period it probably average out to doubling the cost of living about every 10 years, and that's the reason why you shouldn't hold in cash, because cash is sure to lose its purchasing power. Instead of that you should hold things that are likely to reflect the higher prices."

                      From: http://www.youtube.com/watch?v=jZlq7drr6Ek


                      • #12
                        Nice work Fudosan.

                        Now Tweet on it


                        • #13
                          You've got me excited! I'm working on it.


                          • #14
                            Video: John Templeton's Life

                            This video is a compilation of various interviews and speeches made by John Templeton ( 1912-2008 ). The date of this video is not known, but one of the interviews suggests that it must be 2002 (the year he turned 90) or later. In this video, John also talks about how something unpleasant in his life actually turned out to be a blessing.

                            Other major points are:

                            "Through out our history we have always tried to do those things that are temporarily unpopular. When we first started in this business 44 years ago we published on the front page of our information brochure the words: To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest ultimate rewards."

                            "In the investment field, it's mainly a matter of hard work. The figures are available. The corporations publish the figures. There are lots of investment dealers in every nation who publish the history and the method used by different corporations, but a person who take the effort and the time to read all the information put out will be able to choose better which one are the truly best bargains."

                            "Real happiness, permanent happiness, comes from spiritual growth, from feeling that you are being beneficial to others, so I'm trying now to say to everybody that if you want to make your life successful, that if you want to happy, that if you want to be productive in your life, what you should try to do is to help other people."

                            Source: http://vodpod.com/watch/1420381-john...&pod=tfpeditor


                            • #15
                              He's a strange guy to listen to. Everything he says sounds like it's a strictly memorized recitation.
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