📖John Templeton
Review and Adjust Regularly
Review investments regularly as conditions change.
Regularly review your investments. Markets change, companies change, and values change. What was a bargain may no longer be one.
🏠 Everyday Analogy
📖 Core Interpretation
In Review and Adjust Regularly, 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：Ongoing review ensures portfolio stays optimal.
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❓ 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
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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