'Chicken Littles' - for your eyes only

[Mo_Gearhead]

I am always amused at ‘the sky is falling’ crowd ...of which we have several here. I once read that the definition of a leader was “One who could keep his head while all those about him were loosing theirs.” I would submit that that can also apply to investing.

You may wish to contemplate a portion of this mans life:
(This is taken from a recent Economist magazine obit.)

John Templeton, investment analyst and philanthropist passed on July 8 at age 95.

In Sept. of 1939 when many were spooked and selling the (stock) market, he borrowed $10,000 and bought 100 shares in everything he could that was trading for less than one dollar on the NYSE. All but four (4) eventually turned profits. His principle in investing? ‘To purchase when others are despondently selling …and sell when others are greedily buying.’ He liked to enter at the point of “maximum pessimism”.

He founded the Templeton Funds and his Growth Fund averaged an annualized (1954-1992) return of 14.5%.

He set up (1987) the Templeton Foundation and endowed it with 1.5 billion dollars.

My point: opportunities exist. Seek them out. Young people sometimes view life only through their experience of years ...best to study history, carefully.

[widgeon13]

you mean the days of a quick mil$ are over.

[kstar]

There's a bit of a back story not picked up in all of the obit pieces, or at least the ones I have read.

Yes, Templeton gave his broker instructions to buy 100 shares of every company trading under $1; His broker came back and said he had done so, but there was money left over because he didn't buy bankrupt companies. Sir John told the broker to buy stock in bankrupt companies trading under a dollar too, and this added 34 such bankrupt companies to the portfolio.

This makes the "only four unprofitable trades" even more remarkable.

Truly a legend.

Best,