INVESTING MANTRAS 

CRUCIAL INVESTING LESSONS INVESTORS CAN LEARN FROM SIR JOHN TEMPLETON 

Published By MintGenie Team | 27 Feb, 2024
New investors are advised to learn from experienced figures like Sir John Templeton, whose creation of the Templeton Growth Fund in 1954 yielded an average annual return of over 15% for 38 years.
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Here are some financial lessons one can draw from John Templeton:
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Differentiate Investing from Gambling

Templeton cautioned against day trading and likened investing to a strategic, informed process, rather than mere gambling in a casino. Informed investors stay calm amid market fluctuations.
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Value Stocks over Market Trends

Emphasising individual stock selection over market trends, Templeton believed in identifying stocks with potential, even if they deviated from broader market movements.
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Remain Open-Minded

Templeton advocated for flexibility in investment strategies, suggesting investors consider various asset classes and market conditions, including opportunities to preserve cash for future leverage.
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Buy Low, Sell High

Contrary to common practice, Templeton advised buying when others are selling and maintaining optimism, emphasizing the importance of contrarian thinking in outperforming the market.
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Diversification Mitigates Risk

Recognizing the unpredictability of economic and corporate futures, Templeton advocated for diversification across industries, geographies, and risk factors to manage, if not eliminate, investment risks.
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Conduct Thorough Research

Templeton stressed the importance of diligent research before investing, understanding whether one is investing in future earnings or assets, and aligning investment choices accordingly.
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Learn from Mistakes

Templeton viewed mistakes as integral to the learning process in investing, urging investors to analyze errors, derive lessons, and apply them to future investment decisions.
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