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2016 May - Seek answers to new questions. Templeton



"The wise investor recognizes that success is a process of continually seeking answers to new questions using bets."  
- JOHN  TEMPLETON

"THERE’S NO FREE LUNCH"


  1. Never invest in an initial public offering (IPO) to “save” the commission. That commission is built into the price of the stock. 
  2. DO NOT BE FEARFUL OR NEGATIVE TOO OFTEN.
  3. For 100 years optimists have carried the day in U.S. stocks. 
  4. Even in the dark ’70s, many professional money managers
  5. and many individual investors too made money in stocks, 
  6. especially those of smaller companies 
  1. OUTPERFORMING THE MARKET IS A DIFFICULT TASK
  2. BEGIN WITH A MEDITATION - LEARN FROM YOUR MISTAKES.
  3. Forgive yourself for your errors.
  4. DON’T PANIC. Don’t rush to sell the next day. 
  5. The time to sell is before the crash, not after. 
  6. Instead, study your portfolio. If you didn’t own these stocks now, would you buy them after the market crash?


  1. AGGRESSIVELY MONITOR YOUR INVESTMENTS. 
  2. Expect and react to unexpected change.
  3. No bull market is permanent.
  4. DO YOUR HOMEWORK OR HIRE WISE EXPERTS TO HELP YOU. 
  5. Investigate before you invest. Remember, in most instances, you are buying either earnings or assets. 
  1. BUY VALUE, NOT MARKET TRENDS OR THE ECONOMIC OUTLOOK. 
  2. BUY LOW. Prices are low when demand is low. Investors have pulled back, people are discouraged and pessimistic.
  3. When almost everyone is pessimistic at the same time, the entire market collapses. 
  4. INVEST—DON’T TRADE OR SPECULATE. 
Keep in mind the wise words of Lucien Hooper, a Wall Street legend: 
“What always impresses me,” he wrote,“is how much better the relaxed, long-term owners of stock do with their portfolios than the traders do with their switching of inventory.The relaxed investor is usually better informed and more understanding of essential values; he is more patient and less emotional; he pays smaller capital gains taxes; he does not incur unnecessary brokerage commissions; and he avoids behaving like Cassius by ‘thinking too much.” 

  1. INVEST FOR MAXIMUM TOTAL REAL RETURN 
Any investment strategy that fails to recognize the insidious effect of taxes and inflation fails to recognize the true nature of the investment environment and thus is severely handicapped.

 It is vital that you protect purchasing power. 
“Don’t gamble,” he said.“Buy some good stock. 
Hold it till it goes up…and then sell it. 
If it doesn’t go up, don’t buy it!” And vice versa.

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