Tuesday, June 25th, 2024

Unpopular investing

The investment philosophy expressed by Sir John Templeton is at once simple but very difficult to follow.  The mutual fund managers I recommend and that manage money for you mostly follow a discipline similar to Sir John’s.  Notice how much he emphasizes the importance of using your reasoning and independent judgement as opposed to following the herd.

Sir John  Templeton 1“If you want to buy the same thing that is popular with your friends or popular with the investment analysts, you can’t get a bargain.  If you buy the same thing they buy you will get the same performance they get.  If you are going to have a superior performance, you’ve got to buy what the other people are not buying or even what those are selling.  Therefore, we search for those areas that are unpopular and then we study them to see if that unpopularity is permanent.”

Sir John Templeton, November 1979

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