Investment Lessons from John Templeton

Ken Faulkenberry — Fri, 20 Nov 2009 14:23:06 +0000

John Templeton was one of the greatest Investors of all time. He said “It is impossible to produce superior performance unless you do something different from the majority” He believed to succeed as a contrarian investor, you must recognize what the crowd believes, understand why the majority is wrong, and have patience and conviction to stick with what is, by definition, an unpopular bet.

Here was his Investment Plan:

1. Save, don’t spend.

2. Look for value. He searched for companies that were at low prices and offered an excellent long-term outlook.

3. Take calculated risks. Diversify among many opportunities.

4. Take advantage of International free markets. “Avoid investing in countries with a high level of socialism or government regulation of business. Business growth depends on a strong free-enterprise system.

5. Minimize taxes. Templeton typically held stocks for 5 years or more. Take advantage of tax-deferred vehicles such as 401Ks, and IRAs.

While the Arbor Investment Planner can’t guarantee the kind of results John Templeton achieved, we use the same kind of approach in picking individual investments as he did. Companies with strategic advantages, strong balance sheets, a good long-term outlook; and selling at bargain prices are all important attributes we look for.

The Arbor Investment Planner does quality research, and provides Investors who manage their own portfolio, with step-by-step instructions to place investments in a properly diversified portfolio. If we can help you with your portfolio please contact Ken Faulkenberry at KFinvest@aaamp.net or 281-719-8904.

More Information available at: www.ArborInvestmentPlanner.com

Arbor Asset Allocation Model Portfolio (AAAMP) Blog » free markets

Investment Lessons from John Templeton