TIP612: Investing In Fear: Profiting From Maximum Pessimism w/ Lauren Templeton
We Study Billionaires - The Investor’s Podcast Network
Investing in Pessimism: Lessons from Templeton
This chapter explores the investment philosophy of a renowned investor who capitalizes on market pessimism to uncover value. It also highlights the importance of community among value investors and introduces resources to aid in smarter financial decisions.
Kyle talks to Lauren Templeton about the many investing and life lessons she learned from investing legend Sir John Templeton, how she sets up her daily life to stay disciplined and avoid biases, how to utilize the scientific method for investing purposes, how we can use lessons from history to improve our decision making today, the importance of utilizing multiple evaluation tools to find great investments, sectors that are facing maximal pessimism today that might be the winners of tomorrow, and much, much more!
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
05:56 - Why we should combat “home bias”.
05:56 - Why high savings rates are so important for new opportunities.
05:56 - How savings rates have changed with the times.
05:56 - The hurdles you need to overcome for investing in Japan.
12:06 - The importance of looking at unpopular sectors.
12:24 - What Sir John Templeton thought about quality.
12:24 - Why maximum optimism is a risky place to deploy capital.
12:24 - How Sir John Templeton offset value traps using his strategy.
12:24 - Why you should use multiple evaluation tools in your analysis.
17:38 - How Lauren created her life to stay disciplined.
17:38 - The strengths of lowering how reactive you are.
17:38 - The importance of living a disciplined lifestyle to improve yourself.
21:18 - How to utilize the scientific method in investing.
27:01 - How Lauren has decreased the effects of FOMO.
27:01 - The importance of removing yourself from the crowd.
29:54 - How Lauren has used inversion to help her investing strategy.
34:22 - Why you should look at sectors with bad outlooks.
34:22 - How Lauren fights confirmation bias.
43:10 - How Lauren’s investing strategy has altered given the current macro backdrop.
47:07 - The importance of alignment between your daily life and investing philosophy.
47:07 - How Sir John Templeton tinkered with his portfolio while staying true to his core philosophy.
49:11 - Why you should understand maximum pessimism and how it creates opportunities.
49:11 - The historical returns in small caps after having the valuation gap we are seeing today.
49:11 - Why Lauren thinks China is showing maximum pessimism based on her observations at ValueX.
49:11 - Why Lauren sees an opportunity in small caps right now.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Buy Lauren’s book, The Templeton Way here.
- Listen to Lauren’s podcast, Investing The Templeton Way here.
- Subscribe to her newsletter, the Maximum Pessimism Report here.
- Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
- Follow Kyle on Twitter and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
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