Sir John Templeton was a legendary investor, banker, fund manager & philantrophic!
Recently heard his talk "Keys to Investment Success"
Let's go through the key learnings about investing, spirituality & life!
A thread 🧵
Thank you for the recommendation @Gautam__Baid
Recently heard his talk "Keys to Investment Success"
Let's go through the key learnings about investing, spirituality & life!
A thread 🧵
Thank you for the recommendation @Gautam__Baid
How should you buy a stock?
Don't try to time the market.
The best way:
Buy at fraction of a stock's true value, hold it till market realises the value.
True for stocks, True for any asset!
Don't try to time the market.
The best way:
Buy at fraction of a stock's true value, hold it till market realises the value.
True for stocks, True for any asset!
Is there a method to predict the market?
In 45 yrs of running a mutual fund,
no working method is yet found that can predict market accurately.
In 45 yrs of running a mutual fund,
no working method is yet found that can predict market accurately.
Which is the best investment method?
No investment method shall remain popular forever.
Once it's popular & being used by everyone it will be factored in the market prices.
The only method that will always work is to buy stock that has lowest price in relation to it's value!
No investment method shall remain popular forever.
Once it's popular & being used by everyone it will be factored in the market prices.
The only method that will always work is to buy stock that has lowest price in relation to it's value!
Why buying at fraction of it's true value will work?
It's difficult to identify the price at which the stock will be a value buy!
It takes time, energy & knowledge to study thousands of things about the corporation & then estimate the value.
It's difficult to identify the price at which the stock will be a value buy!
It takes time, energy & knowledge to study thousands of things about the corporation & then estimate the value.
What is the best investment?
One which has been sold by all the people.
The point to buy is when no one else is interested to buy.
Buying at depressed value is safer than buying at an already high value.
One which has been sold by all the people.
The point to buy is when no one else is interested to buy.
Buying at depressed value is safer than buying at an already high value.
On being patient!
If you buy a stock when it's most depressed, it will take at least 5 to 10 years to become popular.
Have patience!
If you buy a stock when it's most depressed, it will take at least 5 to 10 years to become popular.
Have patience!
When to sell?
When you find a better bargain.
The new investment should be better than the earlier one by at least 50%.
You lose if it's 20-30% since there are switching costs.
When you find a better bargain.
The new investment should be better than the earlier one by at least 50%.
You lose if it's 20-30% since there are switching costs.
How to balance money for short term expenses & investments?
Keep the money that you need over the next one year in liquid fund or short term treasury bills.
Anything else should be kept in inflation beating assets.
Keep the money that you need over the next one year in liquid fund or short term treasury bills.
Anything else should be kept in inflation beating assets.
Investment Do's & Don'ts?
~ Avoid buying those things that all others are buying
~ Avoid selling that which are being sold by others
Requires lot of fortitude but rewards the best!!
~ Don't be carried away by the future outlook of the company
~ Check what you are paying for it
~ Avoid buying those things that all others are buying
~ Avoid selling that which are being sold by others
Requires lot of fortitude but rewards the best!!
~ Don't be carried away by the future outlook of the company
~ Check what you are paying for it
Final investment advice
~ Investing is hard work
~ You need to read a lot
~ Don't be driven by just numbers
~ Use common sense while analysing
~ Then have patience
~ Pray that you will always use wisdom and common sense while holding the investment.
~ Investing is hard work
~ You need to read a lot
~ Don't be driven by just numbers
~ Use common sense while analysing
~ Then have patience
~ Pray that you will always use wisdom and common sense while holding the investment.
Are pension funds the best way to go?
~ It's good way to put your money where taxes won't eat the returns
~ Not paying taxes affects the end corpus in a huge way.
~ Retirement accounts e.g. (RIA, PPF, EPF) which are free of are therefore good.
~ It's good way to put your money where taxes won't eat the returns
~ Not paying taxes affects the end corpus in a huge way.
~ Retirement accounts e.g. (RIA, PPF, EPF) which are free of are therefore good.
What needs to change w.r.t people's personal finance?
~ People should save more
~ You cannot have assets if you don't have money saved
~ Get back to the concept of thrift as it was in the earlier years
~ People should save more
~ You cannot have assets if you don't have money saved
~ Get back to the concept of thrift as it was in the earlier years
Why spirituality?
~ Whatever is spiritual is permanent
~ Everything else is temporary
~ Spend your time in harmony with what is permanent that is god
The John Templeton Foundation supports research on discoveries that are at a intersection of religion & science!
~ Whatever is spiritual is permanent
~ Everything else is temporary
~ Spend your time in harmony with what is permanent that is god
The John Templeton Foundation supports research on discoveries that are at a intersection of religion & science!
"Every human being has problems.
There's no body who doesn't have problems.
Every human being has tragedies, has challenges.
That maybe why God created Earth, because that is the way in which the spirit grows.
If the spirit has no problems, no challenges, it doesn't mature."
There's no body who doesn't have problems.
Every human being has tragedies, has challenges.
That maybe why God created Earth, because that is the way in which the spirit grows.
If the spirit has no problems, no challenges, it doesn't mature."
If you found this thread valuable, please re-tweet the first tweet in this thread 👇👇
in the interest of the entire investing community!!
in the interest of the entire investing community!!
https://twitter.com/Finalysis20/status/1417999721805664260?s=20
Here's the link to the interview:
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