Templeton’s six guiding principles
John templeton
Lessons to be etch into the brain.
You have to buy at a time when other people are desperately trying to sell, the point of maximum pessimism.
First, beware of emotions. People get led astray by being excessively careless and optimistic when they have big profits and excessively pessimistic when they have big lossess.
Second, beware of your own ignorance, you need to understand what it is that you’re buying.
Third, you should diversify broadly to protect yourself from your own falliability.
Fourth, successful investing requires patience.
Fifth, the best way to find bargains is to study whichever assets have performed most dismally in the past five years, then to assess whether the cause of this woes is temporary or permanent.
Sixth, one of the most important things as an investor is not to chase fads.
Howard marks
The future may be unpredictable, but this recurring process of boom and bust is remarkably predictable.
We can’t demand a more favorable set of market conditions. But we can control our response, turning more defensive or aggressive depending on the climate.
Both in markets and life, the goal isn’t to embrace risk or eschew it, but to bear it intelligently while never forgetting the possibility of an unpleasant outcome.
When analysing any asset, what is the amount of optimism that’s in the price .
Joel greenblatt
I don’t buy more of the ones I can make the most money on. I buy more of the ones that I can’t lose money on.
Bill Ruane
Invest in a small number of stocks that you‘ve researched so intensively that you have an informational advantage.
Nic sleep and Zakaria
There is the idea of focusing on whatever has the longest shelf life, while always downplaying the ephemeral.
There is the realisation that one particular business model- scale economies shared-creates a virtuous cycle that can generate sustainable wealth over long period.
In a world that’s increasingly geared toward short-termism and instant gratification, a tremendous advantage can be gained by those who move consistently in the opposite directions.
McLenanan
Focus considerable attention on exposure and preparing for a future that may look nothing like recent experience. Beware of the habit of trusting that the future will resemble the recent past.
Future is so uncertain that investors should structure a portfolio that can endure various states of the world, focus heavily on avoiding permanent losses
Focus on resilient wealth creation, imperative to eliminate debt, avoid leverage and beware of excessive expenses. You don act rationally when you’re investing borrowed money.
Be keenly aware of our exposure to risk and should always require a margin of safety.
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