📖John Templeton
Global Competitive Advantage
Assess competitive advantages in a global context.
Judge a company's competitive advantage in the context of global competition. A domestic leader may be vulnerable to international competitors.
🏠 Everyday Analogy
📖 Core Interpretation
John Templeton emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Global competition changes the moat analysis.
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❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
Staying Invested Through Japan’s Bubble Peak (1990)
Templeton had gradually reduced Japanese exposure before the 1989 peak but maintained select, undervalued global holdings through the subsequent volatility of the early 1990s.
✨ Outcome：Disciplined patience and focus on global bargains helped his funds outperform over the following decade.
2
Buying at Outbreak of WWII (1939)
Templeton borrowed money to buy 100 shares each of 104 depressed U.S. stocks under $1 as war began in Europe, based on research that pessimism was extreme and many firms were still fundamentally viable.
✨ Outcome：Within a few years most positions recovered or prospered, turning a small, risky purchase basket into a strong multi‑bagger and forming the basis of his contrarian, research‑driven reputation.
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