Post by roy on Dec 4, 2011 13:43:15 GMT -5
This is a book written by Lauren Templeton (great niece of John Templeton) and Scott Phillips who run a hedge fund.
John Templeton renounced U.S citizenship for tax reasons and lived in the Bahamas and took British citizenship. The guy was a billionaire and obviously he did something right to make money. He lived till he was 95 years of age.
Some of the things from the book
"To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest ultimate reward"
"Bull markets are born on pessism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell".
Invest globally - one can find bargains if one looks globally. One has to be careful about the debt levels carried by the government however.
Death of equities - If you are finding stocks that are trading at their all time lows relative to their estimated worth and you find that all other investors have quit the market for those stocks, you are exploiting the point of maximum pessimism which is the best time to invest.
No trouble to short the bubble - "The four most expenisve words in the English language are this time its different". Templeton profited in the internet bubble by shorting when the lock out period of the employees to sell was about to expire.
Crisis equals opportunity - the book has a table that shows gains in stocks is higher. The book has tables showing the gains before and after an economic shock event. The table includes:
- Attack on pearl harbor
- Korean war
- Eisenhower's heart attack
- Blue Monday - 1962
- Cuban missile crisis
- President Kennedy Assassination
- 1987 crash
- United Airlines LBO failure
- Persian Gulf War
- Asian Financial Crisis
- 9/11
History rhymes but doesnt repeat - Templeton made a killing in Korean stocks after the asian financial crisis.
When bonds are not boring - he bought zero coupon bonds in 2000 which had good yields when the stock market was not attractive.
Sleeping dragon awakens - "If a man takes no thought about what is distant, he will find sorrow near at hand".
The book ends with "If you want to have a better performance than the crowd, you must do things differently from the crowd" - Sir John Templeton
John Templeton renounced U.S citizenship for tax reasons and lived in the Bahamas and took British citizenship. The guy was a billionaire and obviously he did something right to make money. He lived till he was 95 years of age.
Some of the things from the book
"To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest ultimate reward"
"Bull markets are born on pessism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell".
Invest globally - one can find bargains if one looks globally. One has to be careful about the debt levels carried by the government however.
Death of equities - If you are finding stocks that are trading at their all time lows relative to their estimated worth and you find that all other investors have quit the market for those stocks, you are exploiting the point of maximum pessimism which is the best time to invest.
No trouble to short the bubble - "The four most expenisve words in the English language are this time its different". Templeton profited in the internet bubble by shorting when the lock out period of the employees to sell was about to expire.
Crisis equals opportunity - the book has a table that shows gains in stocks is higher. The book has tables showing the gains before and after an economic shock event. The table includes:
- Attack on pearl harbor
- Korean war
- Eisenhower's heart attack
- Blue Monday - 1962
- Cuban missile crisis
- President Kennedy Assassination
- 1987 crash
- United Airlines LBO failure
- Persian Gulf War
- Asian Financial Crisis
- 9/11
History rhymes but doesnt repeat - Templeton made a killing in Korean stocks after the asian financial crisis.
When bonds are not boring - he bought zero coupon bonds in 2000 which had good yields when the stock market was not attractive.
Sleeping dragon awakens - "If a man takes no thought about what is distant, he will find sorrow near at hand".
The book ends with "If you want to have a better performance than the crowd, you must do things differently from the crowd" - Sir John Templeton