Sir John Templeton source https://thefinancefriday.com/2020/09/11/sir-john-templeton-mutual-fund/

Who is John Templeton? – History of the trader and investor

Most traders might have heard about bargain buying. It is what John Templeton believes in. This trader is highly famous for his bargain-buying skills. Besides, John Templeton always looks out for opportunities to make more money.

Many traders feel inspired by John Templeton’s investment philosophy. In addition, John Templeton’s wisdom is something that most traders like.

Here, we will discuss Templeton’s trading strategies and his biographical information. Let’s begin.

About John Templeton

Sir John Templeton source https://thefinancefriday.com/2020/09/11/sir-john-templeton-mutual-fund/
Sir John Templeton. Source: thefinancefriday.com
Date of birth:
29.11.1912
Wealth:
5 billion USD
Strategies:
– value investor
– bargain hunter
– made wealth during the Second World War
– drove his inspiration from Benjamin Graham
– believed in long-term trading goals
– helped the mutual fund industry to rise
– believed in fundamental analysis
– invest worldwide
Website:
Interesting facts:
– got his education from Yale University
– excellent poker player
– his parents had a residence in Winchester, Tennessee, US
– John’s parents were of British descent
  • John Templeton has been around as a great investor. His personality was that of a value investor
  • John Templeton is known as a true bargain hunter. In addition, his contrarian investor skills are widely popular among many traders
  • John Templeton owes his trading skills to Benjamin Graham. He was a follower of the value investing principles of Benjamin Graham. In addition, John Templeton is a remarkable investor of the 20th century
  • John Templeton initiated his trading career during the Second World War. Undoubtedly, the market sentiments were following a pessimistic approach during that time. However, John Templeton made wealth during that time
  • To kickstart his trading career, John Templeton borrowed US$10,000. He invested this money in hundred shares of several companies that had potential, but their shares were available for less than one dollar
  • John Templeton was certain that the stocks of these companies would rise as the political unrest set
  • When times became normal, John Templeton succeeded in making extraordinarily high returns
  • However, some companies also went bankrupt because of market unrest

That is how John Templeton initiated his trading journey.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

Biography of John Templeton

Young John Templeton in the year 1937
source https://www.templeton.org/about/sir-john
Young John Templeton in the year 1937. Source: templeton.org
  • John Templeton was born in 1912
  • During John’s birth, his parents had a residence in Winchester, Tennessee, US
  • John’s parents were of British descent
  • The investor got his education from Yale University. Here, he also played the role of assistant business manager for a company
  • His earnings from this job helped him pay his tuition fees
  • John was an excellent poker player. He was also a great and intelligent student
  • John drove his inspiration from Benjamin Graham. That is why he was a hard-core follower of value investing
  • John Templeton’s investing career dates back to the depression of the 1930s
  • He visited a broker and asked him to purchase a hundred shares of companies whose shares were priced at less than one dollar
  • The stock market and industries picked up pace after the Second World War. So, the money that John invested got manifold. This way, John Templeton could earn substantial profits
  • After this, the trader invested in several stocks based on the principles of value investing

Good to know!

John Templeton is also known for his great trading discipline. He was excellent in keeping behind the anxiety that followed trading decisions. In addition, Templeton’s food always stayed elevated.

John Templeton led his trading career to become the world’s top investor. Instead of looking at short-term trading goals, John Templeton believed in setting long-term trading goals. This decision helped him become a millionaire. His trading skills could fetch a net worth of approximately US$5 billion.

Not only this, but with the help of his trading tactics, he helped others investors in the trading world. His name is very credible in helping the mutual fund industry to rise.

Trading and investment strategies of John Templeton

As mentioned, John Templeton’s trading strategies mainly revolved around value investing. John grew his wealth by searching for companies undergoing the depression phase. Also, he put his efforts into finding some quality stocks that most investors avoid purchasing.

John Templeton searched for companies undergoing the depression phase
source https://moneyweek.com/investments/investment-strategy/604495/sir-john-templeton-investment-strategy
John Templeton searched for companies undergoing the depression phase. Source: moneyweek.com

Here are some John Templeton trading strategies that any trader can apply today.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

Value Investing

Because Benjamin Graham inspired John Templeton, he believed more in value investing. So, John would look for such stocks that were undervalued.

Good to know!

The value investing approach requires a trader to look at the potential prospects of the stock in the long run. So, a trader should avoid looking at only short-term goals. Some companies have the potential to make traders rich in the coming years.

Fundamental analysis

While most successful traders relied on technical analysis, John Templeton believed in fundamental analysis. John Templeton believed that a trader could ascertain the asset’s future price with technical analysis. 

John Templeton believed in fundamental analysis
Photo by Unsplash
John Templeton believed in fundamental analysis. Photo by Unsplash

However, fundamental analysis helps a trader analyze the core value of the company or a stock. So, fundamental analysis is key if a trader is looking to trade for the long run.

Make use of a pessimistic approach

Most traders would run away from investments because of negative market sentiments. John Templeton initiated his trading career when the market was down and in depression. He benefited significantly from it.

Good to know!

So, a trader could use pessimistic market conditions to his advantage. John Templeton suggested that traders consider buying stocks when people have given up.

Global Investing

Investing in only domestic companies would be foolish for any trader. There are several opportunities that various multinational companies might bring to a trader. 

Thus a trader must be confident in investing worldwide. Again, a trader should try to make use of pessimistic conditions.

Investing worldwide is a key to success
Investing worldwide is a key to success. Photo by Unsplash

Bottom-up approach

John Templeton followed a bottom-up approach while choosing the stocks he wanted to invest in. He would carefully assess the assets and choose the one with the maximum potential to generate profits.

Invest in lower-valuation assets

If a stock is priced low, it does not mean that its value will not increase. Several lower-valuation stocks help traders make money in the long run.

Good to know!

Lower valuation stocks are beneficial as traders could purchase them at a very low price. Also, traders could sell them off when the price rose to fetch profits.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

What can you learn from John Templeton?

John Templeton’s trading journey is very inspiring for many people. The investor had a very strong judgment that people considered his great talent.

What investors should learn from Sir John Templeton's investment experience
source https://www.templeton.org/about/sir-john
What investors should learn from Sir John Templeton’s investment experience? Source: templeton.org

Some lessons from John Templeton’s trading journey are as follows:

  • First, a trader must trust his judgment
  • Traders should build self-confidence and courage when looking for new opportunities. Many times, a trader might have to question his judgment. However, even if a trader suffers a loss while investing, he can always cover it up by making his mistakes good
  • A trader must quit setting unsustainable trading goals. One must not expect the stock market to shoot up and extrapolate growth
  • Patience is the key while trading. It requires any company or stock time to grow in value. Usually, it happens when a company or a stock successfully gains people’s trust
  • John Templeton was a believer in the fact that having a good lifestyle also contributes to making a trader rich. So, a trader should take frequent breaks from trading now and then. Keeping a distance from the stock market for some time is important for your personal and professional growth
  • Finally, a trader must pay attention to the stock valuation. Valuation or value. Investing can help a trader make profits in the long run

Conclusion about the investing experience of John Templeton

John Templeton had a remarkable trading journey. Benjamin Graham contributed greatly to helping John Templeton build his trading tactics. He was a great follower of the value investing technique. This technique helps them stay in the stock market in the long run. 

John Templeton was a great value investor with many lessons for budding traders.

Traders and investors must learn to take lessons from history. Photo by FT Commission
source https://www.ft.com/content/63dcb1ec-8d45-4d96-9687-676ea894d010
Traders and investors must learn to take lessons from history. Photo by FT Commission

John Templeton’s trading journey also signifies that a trader must learn to take lessons from history. In addition, a trader will perform exceptionally well in the stock market if he keeps his trading goals realistic. 

Furthermore, a trader should also avoid setting any uncanny assumptions. Greed to earn from the stock market might make a trader make irrational trading decisions. Once a trader learns that market changes are taking place, they earn more money.

Trade more than 3,500+ markets from 0.0 pips spread without commissions and professional platforms:

(Risk warning: 79% of retail CFD accounts lose money)

FAQs – frequently asked questions about John Templeton

Was John Templeton a great trader?

Yes, John Templeton was a great trader who could achieve a net worth of $5 billion during that time. He was a great follower of value investing techniques by Benjamin Graham. In addition, he was a humble trader who followed a frugal lifestyle.

Why was John Templeton called a bargain hunter?

John Templeton was titled a bargain hunter because he always looked for opportunities where assets were available for a low price. He believed in buying undervalued stocks that would rise in value.

In what kind of investing did John Templeton believe?

John Templeton was a strong believer in value investing. He always said long-term trading goals for himself and recommended other traders do the same.

Last Updated on February 26, 2023 by Yuriy Kunets