#65 – Six Lessons On Investing From John Templeton And Fireside Chat On Inflation


John Templeton was an American-British investor, banker, fund manager, and philanthropist. He created the Templeton Growth Fund which averaged 15% for 38 years. He was alive from 1912-2008 and a student of Ben Graham. He pioneered investing globally diversified mutual funds. In 2005, he wrote a brief memorandum predicting that within five years there would be financial chaos in the world


First of all, said Templeton, beware of emotion: “Most people get led astray by emotions in investing. They get led astray by being excessively careless and optimistic when they have big profits, and by getting excessively pessimistic and too cautious when they have big losses.”

Second, said Templeton, beware of your own ignorance, which is “probably an even bigger problem than emotion.… So many people buy something with the tiniest amount of information. They don’t really understand what it is that they’re buying.”

Third said Templeton, you should diversify broadly to protect yourself from your own fallibility.

CBM Episode on Index Funds: https://coldbrew.money/25-how-to-build-a-passive-portfolio/

Fourth, said Templeton, successful investing requires patience.

Fifth, said Templeton, the best way to find bargains is to study whichever assets have performed most dismally in the past five years, then to assess whether the cause of those woes is temporary or permanent.

Sixth said Templeton, “One of the most important things as an investor is not to chase fads.

CBM Episode on Mental Models (Lindy Effect): https://coldbrew.money/17-more-mental-models/

Fireside Chat:

Meditation rant: 00:25

England and Scotland Rant: 02:40

Michael Burry’s Inflation Tweet: 04:00

Atit bought a car!: 05:00

Templeton’s Rule (Main Content): 09:00

About John Templeton: 09:30

#1 Beware of Emotion: 12:35

#2 Beware of your own ignorance: 18:01

#3 Diversify broadly: 22:02

#4 Be patient: 24:32

#5 Find bargains by understanding the business: 26:05

#6 Don’t chase fads: 32:57

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