📖John Templeton

Search for Bargains Globally

🌿 Intermediate★★★★☆

Look for value everywhere, not just at home. Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong. Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside. In Search for Bargains Globally, 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 diversification finds overlooked bargains.

Avoid misuse: Confusing a low price with true cheapness

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If you search worldwide, you will find more bargains and better bargains than by studying only one nation. The best values are found where others aren't looking.

— Templeton's Way with Money，2012

🏠 Everyday Analogy

Valuation is like buying a house: the asking price reflects mood, but true value comes from structure, location, and long-term utility. Good assets still need sensible prices.

📖 Core Interpretation

In Search for Bargains Globally, 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 diversification finds overlooked bargains.

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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
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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