Are you looking to build a
profitable investment portfolio? If yes, you should strive to discover the
stock market investing secrets of John Templeton, one of the best stock market
investors in the world during his lifetime.
He began his career on Wall
Street in 1937, and he took just three years before buying a small investment
advisory which was valued at just $2 million. Thanks to Templeton's practical
business approach and ideas, the stake rose to $400 million in 1967 when he
chose to sell it to interested buyers.
The very committed
American-born British investor didn't rest on his laurels; he took a step
further by venturing into the mutual fund business when he launched the
Templeton Growth Fund in 1954. Thirty-eight years after its establishment, the
fund averaged a +14.5% annualized gain as it outperformed larger stock
market indexes before selling it to the Franklin Group.
Late John Templeton was
a fearless investor who never shies away from taking risks. He loved
investing in companies many believed were far from maximizing their full
potential. Company's location, net worth, sales rate, and financial capacity
doesn't mean Templeton as he was willing to do business with both young
companies aiming for steady growth.
Talking of his records and
achievements during his 95-year existence, Templeton was among the first people
to invest in postwar-Japan. He was equally among the first to sell out of Japan
in the mid-1980s. How did he manage these feats, what were his secrets and
sources of inspiration? Here are some answers below:
• He isn't afraid of taking Calculated
Risks
The stock market involves
taking calculated risks if you must become a role model to upcoming investors.
Templeton bought $100 shares in more than 104 companies ($1 or less per one)
tipped for bankruptcy due to the European war in 1939. In the end, his
investment gave birth to more than $40,000 because all but four companies survived
the scare.
• Templeton is a Value Investor
Templeton was goal-oriented
and a fundamental investor who knew what he wanted and did everything to get
it. He maps out a “bargain-hunting” investing approach, which played a massive
role in his success story. He focused on stock's value instead of trends or
outlooks.
• He distinguished himself from other
investors by doing what they fail to do
Templeton found the best
strategy that suits his philosophy, and he stuck to it, even when others were
doing something different.
• He explored the 50/50 Rule of investment
To be successful, you must
know how much you earn, how much you spend, and how much you invest. According
to Templeton, an investor who desires to succeed must learn to invest 50% of
his earnings while spending the other 50%.
The Bottom Line
As much as you already have a
unique investing strategy, deploying some of Templeton's secrets won't be a
wrong move. Instead, it would boost your chances of getting a spot among the
world's successful stock market investors within the shortest period.
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