Templeton’s 16 rules for investment success
- First, invest for maximum total real return.
- Invest — don’t trade or speculate: Trading leads to unforced errors.
- Remain flexible and open-minded about types of investments.
- Buy low: “Buying at the point of maximum pessimism” as Sir John put it, is critical to investment success. Panics and bear markets are a reliable source for excess return. Everyone wins in a bull market, and investor returns will be determined by their behavior in a bear market.
- When buying stocks, search for bargains among quality stocks.
- Buy value, not market trends or the economic outlook: Owning a rising stream of earnings and cash flows builds wealth, not guessing at market moves or economic outcomes
- Diversify. In stocks and bonds, as in much else, there is safety in numbers.
- Do your homework or hire wise experts to help you.
- Aggressively monitor your investments: Even iconic blue-chips can unravel.
- Don’t panic: Selling your portfolio amounts to market timing, and if you are thinking of selling following a share price panic then you have already proven that you are not a good market timer.
- Learn from your mistakes: All investors make mistakes, and they should be expected.
- Begin with a prayer: Sir John’s use of prayer to begin meetings was an act of mindfulness and focus.
- Outperforming the market is a difficult task.
- An investor who has all the answers doesn’t even understand all the questions.
- There’s no free lunch.
- Finally, do not be fearful or negative too often.
Sumber : Templeton’s 16 rules for investment success