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Templeton's 22 Principles For Successful InvestingSunday, June 05, 2005 | 11:15 AM
in Investing | Markets | Psychology/Sentiment
Templeton's 22 Principles For Successful Investing
1. There is only one long term investment objective, maximum
after tax return.
2. Success requires study and work. It's harder than you think.
3. Outperforming the majority of investors requires doing what
are not doing.
4. Buy when pessimism is at its maximum, sell when optimism
maximum.
5. Therefore, buy what most investors are selling.
6. Buying when others have despaired, and selling when they a
hope, takes fortitude.
7. Bear markets aren't forever. Prices usually turn up a year be
business cycle hits bottom.
8. Popularity is temporary. When a sector goes out of fashion, i
out for many years.
9. In the long run, stock index prices fluctuate around the EPS t
line.
10. Stock index earnings fluctuate around replacement book valthe stocks in the index.
11. Buy what other people buy and you will succeed or fail as o
people do.
12. Timing: buy when short term owners have finished selling a
when they've finished their buying, always opposing the fashion.
13. Stock prices fluctuate more than values. So stock indexes w
never produce the best total return performance.
14. Focus on value because most investors focus on outlooks a
trends.
15. Invest worldwide.16. Stock price fluctuations are proportional to the square root
price.
"One of the brightest minds
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17. Sell when you find a much better bargain to replace what y
selling.
18. When your method becomes popular, switch to an unpopul
method.
19. Stay flexible. No asset or method is forever.
20. Stock market investing takes more skill than any other kind
investing.
21. A person can outperform a committee.
22. If you begin with prayer, you will think more clearly and ma
fewer mistakes.
I first came across this list in Charles Ellis book, The Investor's Antholo
Ideas from the Industry's Greatest Minds. Its also online here: William
The Templeton Touch (1983).
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Templeton: 22 Steps to Successful Investing from Zmetro.com
1. There is only one long term investment objective, maximum total af
on Glass Steagel
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Falls 14.6% below May 2007
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More here.... [Read More]
Tracked on Jun 7, 2005 11:51:51 PM
Comments
Interesting , step #22 . I always ask my higher power to be the best tr
can be each day ( with his help ) Have spoken with other traders who
"rule" as well . It works . Good group of suggestions 1-22 !! Thanx
Posted by: Bill | Jun 6, 2005 9:49:16 PM
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Many Are Smarter Than the
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Wisdom Shapes Business,
Economies, Societies and
Nations
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Delusions & the Madness of
Crowds
John Magee: Technical
Analysis of Stock Trends
Fredric Dannen: Hit Men:
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