📖John Templeton
Know What You Own
Only invest in what you can understand.
Never invest in a company you can't explain simply. If you don't understand it, you can't evaluate its prospects.
🏠 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：Understanding is a prerequisite for intelligent investing.
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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
Asian Financial Crisis Opportunity (1997)
During the Asian financial crisis, Templeton humbly accepted he couldn’t time bottoms and gradually bought quality companies as currencies and markets collapsed.
✨ Outcome：Suffered short-term volatility, but positions rebounded strongly over the next several years, validating disciplined, humble value investing.
2
Buying During the 1973–74 Crash (1974)
Templeton bought quality U.S. and global stocks as markets fell nearly 50% amid inflation and recession fears, staying invested despite widespread pessimism.
✨ Outcome：Within several years, markets recovered strongly and his patient, diversified positions produced substantial long‑term gains.
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