📖John Templeton
Global Stock Selection
Search globally for low P/E with high growth.
To get the best returns, search for companies worldwide with the lowest price-to-earnings ratios and the best growth prospects.
🏠 Everyday Analogy
📖 Core Interpretation
In Global Stock Selection, John Templeton focuses on the gap between price and value. Returns come from paying less than what a business is worth, not from guessing short-term market moves.
💎 Key Insight：Global stock selection multiplies opportunities.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong.
🎯 How to Practice
Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside.
⚠️ Common Pitfalls
Confusing a low price with true cheapness
Using one metric without business context
Overly optimistic assumptions that erase margin of safety
📚 Case Studies
1
Investing in Postwar Japan (1954)
While most U.S. investors avoided Japan after WWII, Templeton bought undervalued Japanese equities amid reconstruction and negative sentiment toward the country.
✨ Outcome：Japanese stocks soared over subsequent decades, delivering outsized returns and validating his thesis of going where the crowd is absent.
2
Dot-Com Bubble Caution (1999)
Templeton warned that tech stocks were overpriced and avoided the mania, buying out-of-favor value stocks instead of chasing momentum.
✨ Outcome：He underperformed briefly during the bubble, but preserved capital and outperformed after the 2000–2002 crash.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →