“People are always asking me where is the outlook good, but that’s the wrong question, The right question is: Where is the outlook the most miserable? “
That was the investment philosophy of the contrarian investor, Sir John Templeton.
On the day when World War II began, Sir John called his broker and asked him to buy 100 shares of each NYSE-listed stock selling below $1. This was the first time he ever borrowed $10,000 for an investment. His broker warned that many of these companies are going bankrupt. Sir John insisted on buying them and said that those were going to be the most valuable investments. At the time of selling, he had made five times of his initial capital.
Born in Winchester, TN, in 2012, Sir John had a humble beginning. He supported his Yale education by playing poker and doing other part-time jobs. Starting his career on Wall Street in 1938, he created the largest and most successful international fund of all time. In 1972, he established the Templeton Prize to recognize discoveries that produced new insights about religion. The award amount, currently £1,000,000, always exceeds the monetary amount of the Nobel Prize. Maybe this was his way of keeping scores.
Being extremely frugal, he always flied coach and was famous for writing his employee notes on a used piece of paper. He would later staple these papers together in a notepad. As a young couple, Sir John and his wife decided to save 50% of his income. They furnished their first house with just $25. He was opposed to any kind of waste, whether it be of money or time.
Playing golf or buying yachts — such leisure activities never excited him. His idea was that it’s more important to be useful than to seek pleasure.
Sir John was the one of the first few investors in the US to look globally for value.
“If you search worldwide, you will find more bargains-and possibly better bargains-than in any single nation.”
He made a significant returns from his investments in Japan in 50s and 60s.
Being a true contrarian, he moved to Bahamas in 1968. The Templeton fund’s performance got even better once he shifted to Caribbean.
There is so much we can learn from the life of Sir John, and it’s not only limited to investments. I have compiled my favorite quotes from him on different topics.
On Work and Happiness
“Work is the true elixir of life. The busiest man is the happiest man.”
“Work, hard work, and long hours of work. Men do not break down from overwork, but from worry and dissipation.”
“If you are poor, work. If you are burdened with seemingly unfair responsibilities, work. If you are happy, work. Idleness gives room for doubts and fear. If disappointments come, keep right on working. If sorrow overwhelms you and loved ones seem not true, work. If health is threatened, work. When faith falters and reason fails, just work. When dreams are shattered and hope seems dead, work. Work as if your life were in peril. It really is. No matter what ails you, work.
On Life
“It is human nature to get stuck in a rut and resist innovation, but you must teach yourself to try new paths. Don’t let a day go by without learning something new. The successful life is an adventurous one.”
On Making Money
“If you want to become really wealthy, you must have your money work for you. The amount you get paid for your personal effort is relatively small compared with the amount you can earn by having your money make money.”
On Serving Others
“The measure of a man is not the number of his servants but in the number of people whom he serves.”
On Bull Market
“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria.
You can watch the movie made on Sir John’s life here.
Thank you for reading!
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Originally published at https://devvrat.substack.com.
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