📖John Templeton
Global Diversification
Abandoned markets offer the greatest value opportunities globally.
The best bargains are often in countries that other investors have abandoned. Think globally, not just domestically.
🏠 Everyday Analogy
📖 Core Interpretation
Templeton pioneered international investing when most investors only looked domestically. Global markets offer more opportunities.
💎 Key Insight：When investors flee a country due to crisis or negative headlines, assets often become severely underpriced relative to intrinsic value. Political turmoil, economic contraction, or currency collapse creates fear that exceeds actual long-term risk. Patient capital that enters these forsaken markets during maximum pessimism can capture exceptional returns as conditions normalize and capital returns.
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❓ Why It Matters
Different countries experience cycles at different times. This creates perpetual opportunities.
🎯 How to Practice
Search for value in overlooked markets. Don't be limited by home country bias.
🎙️ Master's Voice
If you want to have a better performance than the crowd, you must do things differently from the crowd.
Templeton was a pioneer in global investing when most Americans only bought domestic stocks. His willingness to invest anywhere in the world gave him opportunities unavailable to his peers.
⚔️ Practical Guide
✅ Decision Checklist
- Am I doing something different from the crowd?
- What opportunities exist where others are not looking?
- Am I truly independent or following consensus?
📋 Action Steps
- Look for opportunities globally
- Go where other investors are not
- Develop independent thinking
🚨 Warning Signs
- Home country bias
- Following the crowd
- Limiting investment universe
⚠️ Common Pitfalls
Currency risk
Political instability
Lack of local knowledge
📚 Case Studies
1
Postwar Japan Recovery (1949)
Templeton bought deeply depressed Japanese stocks amid post-WWII devastation, when many investors avoided the market due to political and economic uncertainty.
✨ Outcome：Massive multi-decade gains as Japan industrialized and export growth surged, validating global value investing beyond the U.S.
2
Early Investment in South Korea (1962)
Templeton invested in obscure South Korean companies when the country was poor, politically unstable, and largely ignored by foreign investors.
✨ Outcome：Substantial returns as South Korea transformed into an export-driven Asian tiger, reinforcing his case for broad global diversification.
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