📖John Templeton
Study Before Investing
Thorough study must precede every investment.
Before making any investment, study the situation thoroughly. Know everything about the company, the industry, and the country.
🏠 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：Deep research is the foundation of sound 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
U.S. Housing Boom (2006)
Many believed financial innovation and nationwide housing strength eliminated major housing downturns. Templeton saw soaring prices and lax lending as classic speculative excess.
✨ Outcome：The 2007–2009 crisis exposed systemic risk, home prices plunged, and overleveraged investors suffered, reinforcing his warning against claims of permanent new eras.
2
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.
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