Strategic Reallocation in Market Downturns

This chapter discusses effective strategies for investing during market downturns, specifically addressing cash reallocation during significant sell-offs like in March 2020. It emphasizes the importance of assessing portfolio positions and upgrading to assets with higher return potential to adapt to changing market conditions.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

On today’s episode, Clay is joined by Scott Phillips to discuss how to invest during times of max pessimism. Scott is married to and manages money with Lauren Templeton, who is Sir John Templeton’s great-niece. Sir John was one of the greatest international investors of the 20th century and the master of finding pockets of the market that were most distressed and offered the highest level of asymmetric returns.

Scott Phillips is a Principal and Chief Investment Officer at Templeton and Phillips Capital Management, LLC. Mr. Phillips also serves as a Managing Member to the Templeton and Phillips Partners Fund, LLC.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

03:02 - What helped Sir John Templeton think independently and have the courage to stray from the crowd.

10:01 - Sir John’s lessons living through the Great Depression.

15:24 - How Scott works to teach his children the values around money that Templeton embodied.

22:20 - The investment lessons that Scott learned from studying the career of Templeton.

35:09 - The three ways to generate excess returns in the markets.

43:48 - How Scott’s fund capitalized on the market panic in March 2020.

49:25 - Areas of the market Scott deems to be significantly undervalued.

56:30 - Why US investors should consider diversifying away from the dollar.

56:48 - Scott’s current thoughts on investing in China.

01:10:27 - How Scott thinks about shorting the occasional bubble in the market.

01:18:21 - Scott’s thoughts on continuing to be optimistic about the future.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Check out Templeton & Phillips Capital Management.
Scott’s books: Investing the Templeton Way, The Templeton Touch, & Buying at the Point of Maximum Pessimism.
Sir John Templeton’s book: The Templeton Plan.
Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
Related Episode:TIP585: Concentrated Value Investing w/ Shree Viswanathan or watch the video.
Check out all the books mentioned and discussed in our podcast episodes here.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

Bluehost
Fintool
PrizePicks
Vanta
Onramp
SimpleMining
Fundrise
TurboTax

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests