Sir John Templeton

This piece by newsletter writer Mark Skousen lists Sir John Templeton's five-step formula for achieving financial independence. If that sounds like something more suited to financial planning blog, you're right.

This is the part of Skousen's article that catches my attention -- as a backdrop to picking stocks in today's world:

Last year, I saw Sir John . . . on video at the London Money Show. He is 93 years old, but looked very alert, and although he spends more time on his religious and charitable work, he remains an avid investor.

I must admit, I was shocked by his answers to a series of questions:

Terrorism? "Not a serious threat... it's unimportant."

Wall Street scandals and Sarbanes-Oxley? "Not a major problem for business."

Inflation? "Not to worry." (And gold? "Not a bull market!")

Future dollar crisis? "No way."

Economic growth? "I see no interruption in our standard of living, which could be 100 times better by the end of this century."

The only concern he expressed was about "creeping socialism" and government regulation of business around the world.

Comments

[Fred]

Where was this guy on september 11, 2001?

[John]

Fred,

I don't take Sir John's comments to be insensitive to tragedy and human misery. He's probably viewing it like this: the 20th Century saw two world wars, numerous smaller conflicts, the cold war, assasinations, etc. and the markets still did well over time.

[Bob G]

That sure is different than what Templeton said 1 or 2 years ago. Back then he said the dollar would drop 20 or 30% and houses would fall in value by up to 90%!

[me]

I heard what Bob G said.

[John]

Bob & me: I recall that, too. Then he backed off a bit later on. Several years ago he made a big bet on US Treasury STRIPS and it paid off big, if memory serves.

[Lauren Templeton]

NEW BOOK RELEASE:

INVESTING THE TEMPLETON WAY

The Market-Beating Strategies of Value Investing's Legendary Bargain Hunter

The first insider, in-depth exploration of Templeton's investing strategies and pioneering approaches
In the pantheon of value investing giants, including Graham, Dodd, and Buffet- John Templeton stands above them all. As a pioneer whose career spanned eight decades, Templeton was instrumental in creating the world in which value investing has flourished. Investing the Templeton Way provides a never-before-seen glimpse into Sir John's timeless principles and methods-revealed by his great niece and successful hedge fund manager Lauren Templeton.
Lauren Templeton shows you how to invest the Templeton way by describing the methods behind Sir John's investment selection process, providing historical examples of his most successful trades, and explaining how to apply the same approaches to your own portfolio. Featuring extensive interviews with Sir John himself, Investing the Templeton Way is destined to be a classic resource.
Sir John Templeton is “the greatest stock picker of the century”-Money Magazine