Golden Nuggets from John Templeton and its hidden meanings

“The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell” – He is informing us to buy stocks when public are panic and sell when public are greedy

“I never made money for clients by buying anything expensive” – Telling to research and find out the fair price of a share. This nugget saying the requirement of homework.

“The only investor who should not diversify is the one is right 100 percent of the time” –Informing us the bad habit Overconfidence.

“For those properly prepared in advance, a bear market in stocks is not a calamity but an opportunity” – A structural financial plan with long term outlook make an investor able to not panic on stock market fluctuations. Instead, he can celebrate the buying opportunity giving by bears in stock market.

“If you buy the same securities as other people, you will have the same results as other people….To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward” – Clearly inform us to not follow what public doing.

“Bear markets have always been temporary. And so have Bull markets” – Informing is the patience required as an investor when stock market fluctuates.

“…To many investors can spoil any share selection method or any market timing formula” – Don’t trust on analysts, brokers or experts. Each one of them says different about a same stock or stock market timings. Do your own research to identify the possibility.

“History shows that time, not timing, is the key to investment success. Therefore, the best time to buy stocks is when you have money” – Saying the requirements of being a long term investor instead of short term one.