📖John Templeton

Bargain Hunting Method

🌿 Intermediate★★★★☆

Seek bargains where nobody wants to look. Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time. Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias. John Templeton advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency. Key insight: Unpopularity breeds the best bargains. A process is like a pilot checklist: discipline prevents simple mistakes when pressure rises and keeps outcomes more repeatable.

Avoid misuse: Having opinions without execution criteria

💬

To find the best bargains, focus on the most unpopular countries and the most unpopular industries within those countries.

— Templeton's Way with Money，2012

🏠 Everyday Analogy

A process is like a pilot checklist: discipline prevents simple mistakes when pressure rises and keeps outcomes more repeatable.

📖 Core Interpretation

John Templeton advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Unpopularity breeds the best bargains.

AI Deep Analysis

Get personalized insights and practical guidance through AI conversation

❓ Why It Matters

Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.

🎯 How to Practice

Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.

⚠️ Common Pitfalls

✕Having opinions without execution criteria
✕Reviewing outcomes but not decisions
✕Abandoning rules during volatility spikes

📚 Case Studies

1
Tech Bubble Trim (1999)
Templeton reduced exposure to overvalued U.S. tech stocks as valuations became extreme in the late 1990s, selling into market euphoria.
✨ Outcome：Missed final phase of gains but preserved capital when the bubble burst, enabling later purchases at bargain prices.
2
Pre‑Crash Profit Taking (1987)
Ahead of the October 1987 crash, Templeton sold selected U.S. and developed‑market equities that had doubled or more, following his valuation and discipline rules.
✨ Outcome：Losses were limited during the crash, and cash raised was redeployed into high‑quality stocks at distressed prices.

📌 Save this principle as your rule

One click to drop it into your personal rule library — every future trade will be scored against it.

See how masters handle real scenarios?

30 real investment dilemmas answered by legendary investors

Explore Scenarios →