Sir Templeton, considered as one of the greatest value contrarian investors, always looked for great investment opportunities not only in theUS but also across the globe. A bargain hunter by nature never failed in his attempts of investing. He can be named as the principal of that school which teaches to ‘search for those companies around the world that offer low prices and excellent long term outlook’. He always believed that it was best to invest in companies that had been neglected by investors who believed in swimming with the tide.
A Value Picker and Believes in Fundamental Analysis:
Templeton was the one who advocated fundamental analysis in a big way. He was not at all in favour of technical analysis of stocks and preferred value investing based on fundamental analysis. He attributed much of his success to his ability of remaining disciplined and calm even during moments of crisis in any market. He always maintained decent distance from the herd of analysts and so-called experts and believed his conscience for every investment decision. His investment principle was: “If you want to have a better performance than the crowd, you must do things differently from the crowd.” Also he vetted the view of being an optimistic even in the gravest of any situation. He once remarked, “Invest at the point of maximum pessimism.”
Rather than acquiring second hand knowledge in the form of reports or results, Templeton always believed in what came directly from the source. He resided inBahamas, a calm and distant environment from the Wall Street, to be more lucrative than networking with Wall Street contacts who usually had limited information and were always in a habit of “selling” whatever little they know. Just to decouple himself from the so-called experts fraternity, Templeton spent the whole of his life inBahamas, miles away fromNew York. When he was once asked the reason for doing so, Templeton said, “ I have found that the results of investments for my clients have been far better here than when I had my office at 30 Rock feller Plaza. When you are inNew Yorkit is much more difficult to go against the herd mentality.” How great his personality was can be reflected from the fact that in spite of being a billionaire he never flew first class and most of the times drove his own car. Templeton was named one of Time magazine’s ‘100 Most Influential People under the category of ‘Power Givers’.
Poverty to Philanthropy:
John Templeton was born in the small town of Winchester, Tennessee USA on November 29, 1912 during his childhood family going through a phase of poverty and he him self struggled a lot to get a better education. John remained unperturbed by the conditions prevailed at home and continued with his studies. He joined theYaleUniversityon the scholarship and graduated in economics and topping the class of 1934. He then joinedOxfordas a Rhodes Scholar and obtained an MA in law in the year 1936. Destiny, mean while, was working out a unique plan for Templeton who found himself heading towardsNew Yorkto work in the stock market. During the early years in the market he worked as trainee with the firm called as Fenner & Beane, that later came to known as Merrill Lynch. The next year, Templeton co-founded an investment firm named Templeton, Dobbrow and Vance at a time when the world was in the middle of the Great Depression.
Templeton was a great philanthropist and established the Templeton Foundation to encourage religious thinking. A major goal of the Templeton Foundation is to provide monetary support for spiritual discoveries. It encouraged research into ‘big questions’ by awarding philanthropic aid to institutions and people who pursue ‘explorations into the laws of nature and the universe and try to find answers to questions about the nature of love, gratitude, forgiveness and creativity’.
He was once quoted saying, “We are trying to persuade people that no human has yet grasped even 1% of what can be known about spiritual realities. So we are encouraging people to start using the same methods of science that have been so productive in other areas in order to discover spiritual realities.”
On July 8th, 2008 Templeton died at the Bahamas due to pneumonia.