Sir John Templeton's 16 Rules

Just For Thinking .....

1. Invest for maximum total real return

2. Invest—don’t trade or speculate

3. Remain flexible and open-minded about types of investment

4. Buy low

5. When buying stocks, search for bargains among quality stocks.

6. Buy value, not market trends or the economic outlook.

7. Diversify. In stocks and bonds, as in much else, there is safety in numbers.

8. Do your homework or hire wise experts to help you.

9. Aggressively monitor your investments.

10. Don’t panic.

11. Learn from your mistakes.

12. Begin with a prayer (Createwealth8888: Think of Risks before Profits)

13. Outperforming the market is a difficult task.

14. An investor who has all the answers doesn’t even understand all the questions.

15. There’s no free lunch  (Createwealth8888: Don't be fooled into investment courses teaching Secrets)

16. Do not be fearful or negative too often.


His Performance Result

A sum of $10,000 invested in his Class A portfolio in 1954, when he set up the Templeton Growth Fund, would have grown to $2m by 1992, when he sold his stake. That represented an annualised average return of 14.5% over 38 years or CAGR > 3.7%.


Read this book? Templeton's Way with Money by Jonathan Davis and Alasdair Nairn