{"id":8009,"date":"2013-04-12T15:15:24","date_gmt":"2013-04-12T09:45:24","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=8009"},"modified":"2020-03-02T18:15:44","modified_gmt":"2020-03-02T12:45:44","slug":"please-read-the-templeton-document-carefully-before-investing","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/please-read-the-templeton-document-carefully-before-investing\/","title":{"rendered":"Please Read the Templeton Document Carefully before Investing!"},"content":{"rendered":"

Sir John Marks Templeton<\/span><\/a><\/span>,<\/strong> the billionaire value-contrarian investor & mutual fund pioneer, is best known for his flagship Templeton Growth Fund<\/strong><\/span> which posted a return of 13.8%<\/span>,<\/strong> compounded annually from 1954 to 2004,<\/strong><\/span> outperforming the Standard & Poor’s 11.1% return during the same period.<\/p>\n

There have been marked examples of his exceptional style of investing:<\/p>\n

\"Exceptional<\/p>\n

During the Depression of 1930s,<\/strong><\/span> John Templeton bought $100 worth of every stock on the New York and American stock exchange that was, then, trading below $1 for a total investment of $10,400. Apparently, he had a pile of junk back then, consisting of stocks of some 104 companies, 34 of which were bankrupt! Just four years later, he sold these holdings for more than $40,000. A whopping CAGR return of ~40%!!<\/strong><\/span><\/p>\n

Sir John Marks Templeton\u2026 (1912-2008)<\/span><\/h3>\n

An American-born British stock investor, a CFA charter holder and a renowned philanthropist- very little of what describes the billionaire mutual fund magnate, Sir John Templeton.<\/strong><\/span> Quite interestingly, he renounced his U.S. citizenship in 1964, thus avoiding over $100 million in taxes by selling off his international investment fund \u2018Templeton, Dobbrow & Vance\u2019, and subsequently being dual naturalized as a Bahamian and British citizen.<\/p>\n

During the next 25 years, Templeton created some of the worlds\u2019 largest and most successful international investment funds. He became a billionaire by pioneering the use of globally diversified mutual funds. His investment fund, Templeton Growth Ltd., established in 1954, was among the first who invested in Japan in the middle of the 1960s. A sum of $10,000 invested in his Class A portfolio in 1954 would grow at a CAGR of 14.5% to a sum of $2 mn by 1992 is testament of the success of his Templeton Growth Fund.<\/p>\n

In 1999, Money Magazine called him “arguably the greatest global stock picker of the century.”<\/p>\n

Upon his retirement from the investment business, Templeton became an active philanthropist worldwide through his John Templeton Foundation, which focuses its donations on spiritual and scientific research.<\/p>\n

Templeton on Investing<\/span><\/h3>\n

Just like Warren Buffet & Charlie Munger, he rejected technical analysis for stock trading, preferring instead to use fundamental analysis<\/span><\/a>.<\/span> As a value-contrarian investor, Templeton too believed that the best bargains were in stocks that were completely neglected – those that other investors were not even studying.<\/p>\n

His investing style can be summed up as looking for value investments, what he called \u201cbargain hunting\u201d, by searching out such targets in many countries instead of just one. Templeton’s investing mantra was “search for companies around the world that offered low prices and an excellent long-term outlook” or simply:<\/p>\n

\"Templeton's<\/p>\n

Let me take you through a checklist of Templeton\u2019s investment criteria for stock-picking for successful investing:<\/p>\n