Advertisements

Sir John Templeton’s Maxims


wealthymatters1.For all long-term investors, there is only one objective – “maximum total real return after taxes.”

2.Achieving a good record takes much study and work, and is a lot harder than most people think.

3.It is impossible to produce a superior performance unless you do something unless you do something different from the majority.

4.The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

5.To put “Maxim 4″ in somewhat different terms, in the stock market the only way to get a bargain is to buy what most investors are selling.

6.To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude, even while offering the greatest reward.

7.Bear markets have always been temporary. Share prices turn upward from one to twelve months before the bottom of the business cycle.

8.If a particular industry or type of security becomes popular with investors, that popularity will always prove temporary and, when lost, won’t return for many years. Read more of this post

Advertisements

Templeton Quote


Templeton Quote

Bull Markets


Sir John Templeton Quote

Prem Watsa – The Canadian Warren Buffett


wealthymatters.comSeeing how Prem Watsa is in the news  in India these days with respect of the sale of Thomas Cook India by its British parent,(http://economictimes.indiatimes.com/news/news-by-industry/services/travel/toronto-based-fairbridge-capital-to-buy-thomas-cook-india-deal-estimated-at-rs-1000-crore/articleshow/13365646.cms)  ,now might be just the time to take a look at the life of this media shy individual.

Watsa is not very widely known outside of Canada, but is well regarded and followed in value investing circles. He has shown an incredibly prescient ability to analyze the financial markets. Some of his most famous calls include selling half his stocks before the 1987 crash and buying S&P puts before the index fell off a cliff in 2000. He also bet against the Japanese Nikkei but his biggest success came more recently during the 2008 sub-prime crisis when he bought credit default swaps on the premise that banks and financial institutions would struggle if a credit and liquidity crisis arose. Today, Watsa is the CEO and Chairman of Fairfax, which has a market cap of approximately $8.7 billion.Fairfax Financial Holdings Limited is a financial holding company based in Toronto, Ontario, which is engaged in property, casualty, and life insurance and reinsurance, investment management, and insurance claims management. He is also a member of the Advisory Board for the Richard Ivey School of Business-his alma mater, a member of the Board of Directors of the Royal Ontario Museum Foundation and as well as Chairman of the Investment Committee of St. Paul’s Anglican Church.Till recently he was also a non-executive director of ICICI Bank.Whatever I can  piece together of his story is pretty fascinating…. Read more of this post

Learning From Sir John Templeton


wealthymatters.comSir John Templeton (November 29, 1912 – July 8, 2008) was a legendary investor and a pioneer of global investing. He took value investing to an extreme, picking industries and companies he believed to be at rock bottom, or as he called it “points of maximum pessimism.”He bought when there was blood on the streets. For example,when investors fled the New York market after the Second World War was declared, Templeton borrowed $10,000 to scoop up stocks priced at less than a dollar, often in companies that were near bankruptcy. In four years, he sold the stock, paid off the debt and pocketed $40,000—the seed money for Templeton Growth Fund, a market beater for many years.

Templeton did not care where a company was located. If it was selling below what he considered to be its asset value, and if it was in an industry or nation that was “out of favor,” he was interested in it. He was among the first to invest in postwar-Japan and among the first to sell out of Japan in the mid-1980s. He was one of the very few who invested in Peru when the communist Shining Path was running rampant, and by doing so, he reaped a fortune for his investors.   Read more of this post

%d bloggers like this: