June 2011
For Sir John Marks Templeton, the road not taken really did make all the difference in the world.
A fundamentalist by nature, Templeton's overall investment thesis was pretty simple: it was to "search for companies around the world that offered low prices and an excellent long-term outlook."
More often than not, that included areas of the world other investors had completely overlooked, most notably post-war Japan. Templeton was not only one of the first investors to place bets there, he was also one of the first investors to sell out as the Japanese bubble peaked in the mid-1980's.
Likewise, his timing couldn't have been better in the late 1990's. At the height of the Internet bubble Templeton predicted 90% of the new Internet companies would be bankrupt within five years.
Confident in that prediction, he went short dozens of technology companies, making himself over $80 million in a matter of weeks. He later called it "the easiest money I ever made."
As a result of such a long and profitable career, Money magazine dubbed him "arguably the greatest global stock picker of the century” in 1999.
One of the great philanthropists of all time, he also left behind a wealth of investment advice for stock pickers at every level.
Templeton's 10 Maxims
He called them Templeton's 10 Principles for Successful Investing. They included the following:
Invest for real returns: “The true objective for any long-term investor is maximum total real return after taxes.”
Keep an open mind: “Never adopt permanently any type of asset or any selection method. Try to stay flexible, open minded and skeptical. Long term top results are achieved only by changing from popular to unpopular the types of securities you favour and your methods of selection.”
Never follow the crowd: “If you buy the same securities as other people, you will have the same results as other people. It is impossible to produce superior performance unless you do something different from the majority. Buying when others are despondently selling and selling when others are greedily buying requires the greatest fortitude and pays the greatest reward.”
Everything changes: “Bear markets have always been temporary. And so have bull markets.”
Avoid the popular: “When any method for selecting stocks becomes popular, you will need to switch to unpopular methods.”
Learn from your mistakes: “'This time is different' are among the most costly four words in market history.”
Buy during times of pessimism: “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”
Search worldwide: “To avoid having all your eggs in the wrong basket at the wrong time, you should diversify. When you search worldwide, you find more better bargains than when you monitor only one nation. You also benefit from more safety thanks to diversification.”
Hunt for value and bargains: “Too many investors focus on outlook and trend. Therefore, more profit is made by focusing on value. In the stock market the only way to get a bargain is to buy what most investors are selling.”
No-one knows everything: “An investor who has all of the answers doesn't even understand the questions.”
Of course, those aren't the only words of wisdom Templeton had to offer. He also once said, "It's nice to be important, but it is more important to be nice."
Templeton passed away in July 2008 at the age of 95. Just when I was moving from the States into Europe for a couple of years. Let's keep his memory alive!
As for some places to start building a lifetime of wealth, I have put together a few videos of the best ways to ride the unstable economic waves and to watch new alternatives to come but hurry to watch them as new ones frequently come and there is not enough space to keep them all at once.... come. Double click below and enjoy…
Joe Velarde
Organs on Demand?
Steve Christ, sells you the Wealth Advisory magazine but watching this 20 minutes video migth be something you want to try : http://www.angelnexus.com/o/web/27458
Steve Christ, sells you the Wealth Advisory magazine but watching this 20 minutes video migth be something you want to try : http://www.angelnexus.com/o/web/27458
Favorite new Oil company
Christian deHaemer sells you the Crisis and Opportunities newsletter. Watching this 35 minutes video is a rare opportunity for those who believe in geological findings: http://www.angelnexus.com/o/web/27462?lloct=2
Christian deHaemer sells you the Crisis and Opportunities newsletter. Watching this 35 minutes video is a rare opportunity for those who believe in geological findings: http://www.angelnexus.com/o/web/27462?lloct=2
America: Inflation Nation
Luke Burgess (through his gloomy U.S. analysis of the nation, attempts to sell you precious metals and mining stocks. Don't necessarily agree with all his concepts but nevertheless, provocative writing: http://www.angelnexus.com/o/web/27412
Luke Burgess (through his gloomy U.S. analysis of the nation, attempts to sell you precious metals and mining stocks. Don't necessarily agree with all his concepts but nevertheless, provocative writing: http://www.angelnexus.com/o/web/27412
Enjoy!
Joe Velarde
Managing Director
Managing Director
e-globalsolutions.com
E-global Solutions. 2011.
All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here.
