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Today, we're going to take a page from the playbook of one of the world's greatest investors: Sir John Templeton.
You've heard me talk about him before – but just in case that's a new name to you – Templeton was famous for buying at what he called points of "maximum pessimism" – meaning when the markets were going (or were widely believed likely to go) to hell in a handbasket.
For example, Templeton purchased $100 worth of every stock that was trading below $1 per share on the New York and American Stock Exchanges in 1938, on the eve of WWII. In total, he purchased 104 stocks for $10,400 – 34 of which were bankrupt at the time he stepped up.
Less than four years later he sold 'em all for a return of more than 400%, as the story goes.
[BREAKING] Are You Owed $23,441 by the U.S. Government?
Templeton would subsequently found the Templeton Growth Fund (TEPLX), and over the next 25 years, he had a hand in creating numerous highly successful international investment funds, nearly all of which relied on some form of buying during times of seemingly impossible market stress or social angst. Every $10,000 invested in the TEPLX from inception would've been worth a projected $13,421,683 on Feb. 28 of this year (sales charges excluded).
In 1999, Money Magazine called him "arguably the greatest global stock picker of the century" – a moniker I think he truly deserved.
Today, I have no doubt that he'd recognize the signals we talk about constantly – the prospect of a "hot war" on the Korean Peninsula and in the Middle East, hopelessly divided social norms, and a European Union that's failing. And I think he'd conclude, as we do, that many people are pessimistic about the market's prospects, when in reality, there are still very profitable companies just begging for the right investment out there.
I also believe Templeton would expect more volatility ahead, just as I do and, again, as we have talked about frequently in recent months.
Which brings me back to your personal "Templeton" moment.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.