The Big Picture | Templeton's 22 Principles for Successful Investing

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    M&A: What's -- or who -- is it good for? | Main | Quo

    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.

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    Read it here first: Implode-O-

    Meter Hits the NYT

    The End of a 20-Year Energy

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    Quote of the Day: Citibank

    Page 1 of 14The Big Picture | Templeton's 22 Principles For Successful Investing

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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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    The Multi Coaster (Roundup) from The Left Coaster

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    Tracked on Jun 7, 2005 12:38:39 AM

    Stock Scans 06-07-05 & News from Sixth World Investments

    Good Morning! The markets took a breather yesterday and it looks like

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    Tracked on Jun 7, 2005 7:39:51 AM

    Templeton: 22 Steps to Successful Investing from Zmetro.com

    1. There is only one long term investment objective, maximum total af

    on Glass Steagel

    Pending Home Sales Index

    Falls 14.6% below May 2007

    Five phases to the current

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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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