We Study Billionaires - The Investor’s Podcast Network

TIP460: Investing the Sir John Templeton Way w/ Lauren Templeton

Jun 26, 2022

Lauren Templeton, founder and president of Templeton & Phillips Capital Management, shares insights from her great-uncle, Sir John Templeton, a pioneer of behavioral finance. She discusses key moments in his career and the family's investment philosophies shaped by resilience and contrarian thinking. The conversation dives into navigating market volatility and the importance of accepting imperfection in investment decisions. Lauren also offers her perspective on optimal investing during periods of pessimism, blending art and science in strategic decision-making.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

Great-Grandfather's Bargains

Lauren Templeton's great-grandfather bought farms at bankruptcy auctions for cents on the dollar.
This taught Sir John Templeton the principle of buying low when others are fearful.

ADVICE

Balancing Thrift and Enjoyment

Balance thriftiness with enjoying the fruits of your labor, especially as you age.
Consider spending on experiences like travel and education, which enrich your life.

INSIGHT

Disciplined Mind

Sir John Templeton was disciplined, practiced impulse control, and believed in positive thinking.
He structured his life to minimize emotional reactions to market fluctuations.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The Little Book of Behavioral Investing

How not to be your own worst enemy

James Montier

The Little Book of Behavioral Investing explores how human psychology affects investment decisions, often leading to suboptimal outcomes. It identifies common behavioral biases such as overconfidence and loss aversion, providing strategies to recognize and mitigate these biases to improve investment performance. The book emphasizes the importance of a disciplined investment process and critical thinking to achieve superior returns.

Atomic Habits

James Clear

Atomic Habits by James Clear provides a practical and scientifically-backed guide to forming good habits and breaking bad ones. The book introduces the Four Laws of Behavior Change: make it obvious, make it attractive, make it easy, and make it satisfying. It also emphasizes the importance of small, incremental changes (atomic habits) that compound over time to produce significant results. Clear discusses techniques such as habit stacking, optimizing the environment to support desired habits, and focusing on continuous improvement rather than goal fixation. The book is filled with actionable strategies, real-life examples, and stories from various fields, making it a valuable resource for anyone seeking to improve their habits and achieve personal growth[2][4][5].

Investing the Templeton way

Lauren Templeton

Scott Phillips

This book provides insights into Sir John Templeton's timeless principles and methods, detailing his approach to investing at the point of maximum pessimism. It offers lessons on how to identify undervalued assets, maintain emotional detachment, and apply quantitative reasoning in stock selection. The book also explores Templeton's pioneering work in global investing and his ability to outperform the market over decades.

Market Wizards

Jack D. Schwager

Market Wizards is a must-read for traders and financiers, offering a deep dive into the strategies and mental attitudes of the world's most successful traders. The book includes interviews with traders such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, and others, revealing their approaches to trading and the factors that contribute to their success. It covers a wide range of markets, including treasuries, futures, commodities, and more, and highlights the importance of solid methodology and proper mental attitude in trading[2][4][5].