Patience and Perseverance - AI Analysis Prompt
Use this John Templeton rule prompt to apply “Patience and Perseverance” to a specific company. It turns a vague opinion into a repeatable checklist: what facts you must verify, which assumptions matter most, what would invalidate the thesis, and the common misreads that create false certainty. Expect a written output you can save: a thesis summary, key risks, and next-step questions for filings and earnings calls. If a claim matters, require primary-source citations before you act. Educational only — not investment advice.
Full Prompt
You are an investment analyst trained in John Templeton's principle of "Patience and Perseverance." Your core philosophy: global contrarian investing, maximum pessimism, spiritual approach. Your task is to analyze {Company Name} through the specific lens of this principle.
## Context
John Templeton teaches: "The only investors who shouldn't diversify are those who are right 100% of the time. For the rest of us, patience and diversification are key."
## Analysis Framework
### 1. Principle Application Assessment
- How does this principle specifically apply to {Company Name}?
- What aspects of the company are most relevant to "Patience and Perseverance"?
- Rate the company's alignment with this principle: Strong / Moderate / Weak
- What would John Templeton focus on first when evaluating this company?
### 2. Quantitative Evidence
- Identify 3-5 key financial metrics most relevant to this principle
- Analyze these metrics over the past 5-10 years for {Company Name}
- Compare with industry peers and historical benchmarks
- Are the numbers improving, stable, or deteriorating?
- What story do the numbers tell through the lens of "Patience and Perseverance"?
### 3. Qualitative Deep Dive
- Evaluate the non-quantifiable factors John Templeton would examine
- Management quality and alignment with this principle
- Industry dynamics and competitive position
- Business model sustainability viewed through this specific lens
- What would John Templeton want to know that isn't in the financial statements?
### 4. Risk Assessment Through This Lens
- What risks does this principle specifically highlight for {Company Name}?
- What could go wrong that this principle is designed to protect against?
- Are there warning signs that John Templeton would flag?
- Stress-test: How would this company perform under adverse conditions?
- What is the worst-case scenario from this principle's perspective?
### 5. Opportunity Identification
- What opportunities does analyzing through this lens reveal?
- Are there hidden strengths the market may be undervaluing?
- How does this company compare to John Templeton's ideal investment?
- What catalysts could unlock value related to this principle?
### 6. Templeton Verdict
- Summarize: Does {Company Name} pass the "Patience and Perseverance" test?
- Rate the investment opportunity: 1-10 from this principle's perspective
- Clear recommendation: Buy / Hold / Avoid (based on this principle alone)
- What conditions would change your assessment?
- One-paragraph summary capturing John Templeton's likely assessment
## Output Format
Present your analysis with specific data points in each section. Use John Templeton's analytical style: global contrarian analysis buying at points of maximum pessimism. End with a decisive verdict.Related reading (close the loop)
Pick one path below to turn the output into a checkable, repeatable decision policy.
- Read the matching principleDefinition, boundaries, pitfalls, and a minimal checklist.
- Master profileMethodology summary + common misreads for this framework.
- Practice in scenariosTranslate conclusions into “what I do under stress”.
- More prompts from this masterTriangulate with multiple rules instead of anchoring on one prompt.
Educational only. Verify facts with primary sources and apply your own constraints.
Basic Questions
How did Templeton patiently wait for the 'point of maximum pessimism' to buy?
Core idea: investing requires great patience — good returns need time
✅ Using this AI prompt, you can systematically analyze any company or investment opportunity from this principle's perspective.
The prompt guides you to:
1. Assess whether the investment target meets this principle's core requirements
2. Identify key risks and blind spots
3. Provide a 1-10 comprehensive rating
Start by analyzing companies you know well for practice, then apply the framework to new investment decisions.
✅ Using this AI prompt, you can systematically analyze any company or investment opportunity from this principle's perspective.
The prompt guides you to:
1. Assess whether the investment target meets this principle's core requirements
2. Identify key risks and blind spots
3. Provide a 1-10 comprehensive rating
Start by analyzing companies you know well for practice, then apply the framework to new investment decisions.
Usage Tips
Is the AI's 1-10 rating reliable?
⚠️ The patience score's greatest value isn't telling you "whether to wait" but helping distinguish "worth waiting" from "not worth waiting."
The rating's unique perspective:
- Templeton's patience had prerequisites — he was patient only with fundamentally strong and reasonably valued investments
- A high score means current holdings are worth continuing to wait; don't abandon them due to short-term volatility
- A low score may mean you're waiting not for opportunity but for a situation that won't improve
Core reminders:
- Patience doesn't equal numbness — you need to continuously monitor whether fundamentals are deteriorating
- AI can help distinguish "value is being realized but needs time" from "fundamentals are worsening, the longer you wait the worse it gets"
- Templeton held stocks for an average of 4-5 years — that's his patience scale, not indefinite
The rating's unique perspective:
- Templeton's patience had prerequisites — he was patient only with fundamentally strong and reasonably valued investments
- A high score means current holdings are worth continuing to wait; don't abandon them due to short-term volatility
- A low score may mean you're waiting not for opportunity but for a situation that won't improve
Core reminders:
- Patience doesn't equal numbness — you need to continuously monitor whether fundamentals are deteriorating
- AI can help distinguish "value is being realized but needs time" from "fundamentals are worsening, the longer you wait the worse it gets"
- Templeton held stocks for an average of 4-5 years — that's his patience scale, not indefinite
Getting started
Does this prompt give investment advice or buy/sell calls?
No. It is a research helper that turns your thinking into checkable inputs and constraints: what evidence you must verify, what would prove the thesis wrong, and what common misreads to avoid. Treat the output as a draft, not a signal. Validate every material number against primary sources (filings, earnings releases, investor presentations, transcripts), and do not act unless you can write down (1) position-size limits and (2) explicit invalidation triggers.
What inputs should I provide for a reliable result?
At minimum: a 1-sentence business model summary, your current thesis (why it wins/loses), time horizon, and risk constraints; a valuation/price range; and the latest financial statements (profit quality, cash flow, debt/liquidity). Add context that reduces hallucinations: the exact filing period, known one-offs, key competitors, and what you do NOT know yet. If an input is missing, label it as missing evidence instead of letting the model guess.
Validation and boundaries
How do I validate the output?
Validate falsifiable claims one by one. Rewrite each key statement into something you can check: the metric, the period, and the source. Numbers must match filings; management claims must be traceable to transcripts/guidance; and “moat” claims need observable evidence (pricing power, retention, switching costs, cost structure). Anything you cannot verify becomes a follow-up task, not a decision trigger. If the model cites dates, confirm they are not beyond its knowledge cutoff.
When should I NOT act on the output?
If you cannot write down invalidation triggers, a position-size cap, or primary-source evidence for the key claims behind “Patience and Perseverance”, do not act. The safer move is usually to reduce size, slow down, and schedule the next review.
More Rule Prompts
Explore other investment principles from this master.
Sell Discipline
The time to sell is before the crash, not after. Sell when optimism is at its peak and better opportunities exist elsewhere.
→Flexibility
It is impossible to produce superior performance unless you do something different from the majority. Be flexible in your approach.
→Research-Based Investing
Never buy a stock without thorough research. Know what you own and why you own it.
→Humility in Investing
An investor who has all the answers doesn't even understand the questions. Humility is essential for long-term success.
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