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John Templeton

The Global Contrarian

You buy where it hurts to look. The worse the headlines, the more interested you get, and you are willing to go anywhere in the world to find the cheapest pessimism.

Position on the six dimensions

Margin of SafetyOnly if cheap
Business QualityAny business
Time HorizonTen years plus
ConcentrationWidely spread
Contrarian BentAgainst the crowd
Decision ModeRules and systems

Where this method has an edge

Where it can hurt you

One rule from this method

Keep a list of assets that are hated right now. Check it quarterly and only buy when you can state why the hatred is overdone.

Buy at the point of maximum pessimism, and diversify globally so no single country's despair can ruin you.

Templeton Growth Fund practice; his "point of maximum pessimism" principle

How close are you to this method?

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The other nine

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The Defensive Analyst
Warren Buffett
The Compounder
Charlie Munger
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The Ground Scout
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Ray Dalio
The Systems Builder
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