📖John Templeton
Value in Neglected Markets
Seek value in the most neglected markets.
The best opportunities are found in the most neglected, overlooked, and unloved parts of the market. That's where the real bargains hide.
🏠 Everyday Analogy
📖 Core Interpretation
In Value in Neglected Markets, 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：Neglect creates mispricing and opportunity.
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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
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.
2
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.
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