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

8/14/2019 The Big Picture | Templeton's 22 Principles for Successful Investing

1/14

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.

"One of the brightest minds

and irreverent voices on Wall

Street today. . .truly is oneWall Street's important

thinkers and rising stars."

- Stock Traders Almanac

"Making the world of finance

and market behavior

accessible to any interestedparty with a web connection."

- Technical Analysis of

STOCKS & COMMODITIES

magazine

T. Boone Pickens on Oil

Prices, Wind Power

Read it here first: Implode-O-

Meter Hits the NYT

The End of a 20-Year Energy

Cycle

Quote of the Day: Citibank

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

9-7-2008http://bigpicture.typepad.com/comments/2005/06/templetons_22_p.html


2/14

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).

Sunday, June 05, 2005 | 11:15 AM | Permalink | Comments (1) | TrackBa

add to de.li.cious | digg this! | add to technorati | email this p

TrackBack

TrackBack URL for this entry:

http://www.typepad.com/t/trackback/763/2441381

Listed below are links to weblogs that reference Templeton's 22 Princip

Successful Investing:

The Multi Coaster (Roundup) from The Left Coaster

Inspired by the fine ladies (wo?)manning the pages at The Sideshow a

Views, here's my very first attempt at a blog roundup. (Bold text is all

emphasis...) 1. David Neiwert has the latest on hate crimes: white-sup

hatred... [Read More]

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

Bullish sentiment out there. Might there be a summer rally? You never

strange market. Stock Scans are ready for today! You know where to fi

[Read More]

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

down-cycle

Pricing in a Bush Presidency

Rubin: Economy Facing

`Extended Difficulties'

Open Thread: Hedonics - or

"Dedonics" ?

Federal Reserve RSS Feed

Complete Archives List

July 2008June 2008

May 2008

April 2008

March 2008

February 2008

January 2008

December 2007

November 2007

October 2007

JULY 2008

Sun Mon Tue Wed Thu Fri Sat

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

Abnormal Returns

Ahead of the Curve

AllAboutAlpha.com

Aleph Blog

Alphaville (FT)

Angry Bear

ArgMax.com

Accrued Interest

Bill CaraBespoke

Calculated Risk

Capital Spectator




3/14

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

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments:

Preview Post

Crossing Wall Street

Bank Implode-O-Meter

Cunning Realist

DealBook (NYT)

DealBreaker.com

DiggStock

Econbrowser

Economagic

Economist's View

Floyd Norris (NYT)

ForeclosurePulse Blog

Footnoted.org

Global Econ Trend Analysis

Greg Mankiw's Blog

Hedge Fund Implode-O-Meter

Housing Bubble BlogInfectious Greed

Information Arbitrage

Institutional Economics

Intangible Economy

JeffMatthewsIsNotMakingThisUp

Kirk Report

Kudlow's Money Politic$

Long or Short Capital

Maoxian

Marketbeat (WSJ)

MessThatGreenspanMade

Metrics 2.0

naked capitalism

NakedShorts

NewsVisual

New Economist

Nouriel Roubini (RGE)

Online Reporter

Random Roger's Big Picture

Real Time Economics

Shadow Govt StatsTech Trader Daily (Barron's)

Silicon Alley Insider

Techdirt

The Learning Curve

The Float

The Stalwart

The Street Light

Ticker Sense

Tom Brown bankstocks

Trader Mike

TraderFeed

TraderPsychology

Trend Following




4/14

vox EU

Wallstrip

WCW

William J. Polley

Winterspeak

a brief message

adrants

airbag industries

autoblog

blog maverick

boing boing

businesspundit

cartoonists index

clicked

collision detection

cool huntingcribcandy

curbed

daily candy

daring fireball

dave barry's Blog

digital daily

dilbert Blog

drawn!

engadget

fimoculous

flowingdata

freakonomics Blog

gapingvoid

gigaom

gizmodo

gmsv

guykawasaki

helium report

idolator

informationarchitects

keith olbermannkottke.org

lifehacker

long tail

mediaShift | PBS

newTeeVee

nixlog

philosophy of genetics

pmarca.com

prediction markets

pvrblog

silicon valley watcher

state of the nation

spreadsheet




5/14

stereogum

the daily tube

tubeRevolution

valleywag

venturebeat

visualcomplexity.com

Apprenticed Investor BlogSpotlight Books

Commodities ConsumerSpending Contrary IndicatorsCorporate Management

Credit Currency DataAnalysis Derivatives DigitalMedia Dividends Earnings

EconomyEmployment Energy FederalReserve Film

Finance FinancialPress Fixed Income/InterestRates Friday Night Jazz Hedge

Funds Index/ETFs InflationIntellectual Property

Investing Legal M&A

Markets MathematicsMedia Music OptionsPodcast Politics

Psychology/SentimentQuantitative R&D RealEstate Retail RR&AScience Short Selling Taxes

and Policy TechnicalAnalysis TechnologyTelevision TradingUnScience Valuation VentureCapital Video Wages &Income War/Defense

Web/Tech Weblogs

Bruce Dover: Rupert

Murdoch's China Adventures:

How the Worlds Most

Powerful Media Mogul Lost a

Fortune and Found a Wife




6/14

Robert F. Bruner: The Panic

of 1907: Lessons Learned

from the Market's Perfect

Storm

Edward Chancellor: Devil

Take the Hindmost: A History

of Financial Speculation

James Surowiecki: The

Wisdom of Crowds: Why the

Many Are Smarter Than the

Few and How Collective

Wisdom Shapes Business,

Economies, Societies and

Nations

Bill Hicks: Love All the

People: Letters, Lyrics,

Routines

Dan Gillmor: We the Media

James Surowiecki: The

Wisdom of Crowds: Why the




7/14

Many Are Smarter Than the

Few and How Collective

Wisdom Shapes Business,

Economies, Societies and

Nations

Charles MacKay:

Extraordinary Popular

Delusions & the Madness of

Crowds

John Magee: Technical

Analysis of Stock Trends

Fredric Dannen: Hit Men:

Power Brokers & Fast Money

Inside the Music Business.

Stephen Jay Gould: Hen's

Teeth and Horse's Toes

Graham Chapman: The

Pythons




8/14

Henry Hazlitt: Economics in

One Lesson: 50th

Anniversary Edition

Leah Bendavid-Val: Through

the Lens : National

Geographic's Greatest

Photographs

William Greider: The Soul of

Capitalism : Opening Paths to

a Moral Economy

Kathleen Meyer: How to Shit

in the Woods: An

Environmentally Sound

Approach to a Lost Art

Thomas S. Kuhn: The

Structure of Scientific

Revolutions

Warren Buffett - Oracle of

Omaha




9/14

Chuck Jones: Chuck Amuck:

The Life and Times of

Animated Cartoonist

Stan Collender: The Guide to

the Federal Budget

William Klein: New York

1954.55

Robert V. Levine: The Power

of Persuasion : How We're

Bought and Sold

Simon Schama: A History of

Britain: The Fate of Empire

1776-2000

Stephen Jay Gould: Full

House: The S read of




10/14

Excellence from Plato to

Darwin

Douglas R. Hofstadter:

Gdel, Escher, Bach: An

Eternal Golden Braid

Economic Indicators

- TECHNICAL ANALYSIS -

Big Charts

StockChart.com

Bar Chart.com

Stock Charts Market

Summary

Decision Point

Advanced Sectoring (Industry

Groups)

Technical Analysis from A to

Z

- FUNDAMENTAL ANALYSIS -

Yahoo Profile

Hoover's Online

I/B/E/S

Yahoo Finance

Smart Money Stock Snapshot

- ECONOMICS -

Economic Cycle Research

Institute Data

Financial Economics Network

(Journals)Ed Yardeni Economics

Network

Dismal Scientist

Economics Journals

Cyclical Turns

Barrons Economic Calendar

- COMMENTARY -

GMSV

CBS MarketWatch

Briefing.com

- STOCK TOOLS -

Smart Money Competitors

Futures Fair Value




11/14

Financial Calculators

- MAGAZINES -

Fortune

Forbes

Business Week

Far Eastern Economic Review

(WSJ)

Economist

Wired

Pensions & Investments

Inc. Magazine

Smart Money

Money

- INVESTMENT

INFORMATION -

CEO ExpressCorpTech

Corporate Information

Dow Jones Indexes

Financenter (Financial

Calculators)

Grant's Interest Rate

Observer

INVESTools (Investor

Education)

IBC (Money Market Mutual

Fund)

Lipper Analytical

Interactive Investor (UK)

Media General Financial

Services

S&P Fund Services

MSN Investor

CNBC

Morningstar

Motley Fool

ON24.com (Webcasting IR)Public Register Annual

Reports

Fox Business News

Quicken.com

SavingForCollege.com

Silicon Investor

Fund Advice

Sound Sector Strategy

StockSheet

StockSmart

StockPoint

Wall Street Research Network

Zacks




12/14

Wired Index

- MEDIA / NEWS -

WSJ

NYT

Google Zeitgeist

Harper's Weekly Review

Salon

Barron's

BBC News

C/Net

CBS MarketWatch

Bloomberg

CNNfn

News.com

E-Commerce News

CNNGuardian (London)

Financial Times

Investors Business Daily

Japan Times

MSNBC

Los Angeles Times

Newsday

Washington Post

Newspapers on the Web

Reuters

Boston Globe




13/14




14/14

Barry Ritholtz | Site design by Moxie Design Studios | Powered


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

Documents

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