#1
Global Industry Analysis
"When analyzing an industry, look at it from a global perspective. An industry that's mature in one country may be growing rapidly in another."
Analyze industries from a global perspective.
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John Templeton📌 Business Judgment
John Templeton's Business Judgment Rules
These are 3 Business Judgment principles distilled from John Templeton's writing and public remarks. Use them as a decision checkpoint: translate each rule into a yes/no test, write what evidence would change your mind, and set a review date before you act. When a rule feels vague, open the full principle page and capture the driver you can verify (cash flows, leverage, incentives, competitive edge). This is educational, not investment advice—double-check primary sources and fit every rule to your time horizon, risk budget, and constraints.
matrix.rulesQuickChecklistTitle
- Clarify your decision: time horizon, position size, and what would change your mind.
- Choose 3–5 principles from this Business Judgment set and write each as a yes/no check.
- Define 2–3 disconfirming signals (invalidation triggers) before you act.
- Record the inputs you used (numbers, sources, assumptions) so you can audit later.
3 principles·Business Judgment
3 Key Business Judgment Principles
#2
Global Competitive Advantage
"Judge a company's competitive advantage in the context of global competition. A domestic leader may be vulnerable to international competitors."
Assess competitive advantages in a global context.
Read Full Analysis →#3
Emerging Market Companies
"Companies in emerging markets often grow faster than those in developed markets. The key is finding quality companies at reasonable prices in growing economies."
Find quality companies in growing emerging markets.
Read Full Analysis →How to apply John Templeton's Business Judgment principles
Use this page as a workflow, not a collection of quotes. Pick 3–5 principles, translate each into a concrete check, and review your decisions on a fixed cadence. These are educational guardrails—always verify facts and match them to your own constraints.
- Clarify your decision: time horizon, position size, and what would change your mind.
- Choose 3–5 principles from this Business Judgment set and write each as a yes/no check.
- Define 2–3 disconfirming signals (invalidation triggers) before you act.
- Record the inputs you used (numbers, sources, assumptions) so you can audit later.
- Run the checklist when you feel urgency (FOMO, panic) and delay action if you cannot answer.
- Review outcomes on your cadence: what you followed, what you ignored, and what to adjust next cycle.
Boundaries and common misreads
- Don’t treat a principle as a buy/sell signal—convert it into evidence you can verify.
- Avoid “name-dropping” John Templeton: if you can’t explain the reasoning, you can’t borrow the rule.
- If the situation is outside your circle of competence, the right move is often to pass.
- Separate risk from uncertainty: write what could go wrong and what would confirm it.
- If two principles conflict, slow down and document the trade-off instead of forcing certainty.
Rehearse a scenario decision → ·Run a weekly toolkit → ·Browse all principles →
About John Templeton
Templeton pioneered global diversification, investing in international markets when most American investors focused solely on domestic stocks. His investment philosophy centered on finding "maximum pessimism" – buying when others were most fearful.
Frequently Asked Questions
What are John Templeton's key business judgment principles?
John Templeton has 3 key principles on business judgment. The most important one is "Global Industry Analysis" — When analyzing an industry, look at it from a global perspective.
How does John Templeton apply business judgment in practice?
John Templeton applies business judgment through several key principles including "Global Industry Analysis" and "Global Competitive Advantage". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes John Templeton's approach to business judgment unique?
John Templeton's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, John Templeton provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
How do I validate John Templeton's Business Judgment rules without blindly copying them?
Treat each principle as a hypothesis. Write the evidence you would need, collect it from primary sources when possible (filings, letters, transcripts), and note what would invalidate the conclusion. If you can’t define inputs and triggers, you’re not applying the rule—you’re quoting it.
What’s a practical review cadence for applying Business Judgment principles?
Pick a cadence you can sustain (weekly or monthly) and review process signals first: whether you followed your checklist, respected your boundaries, and documented assumptions. Only then look at outcomes. The goal is fewer low-quality decisions, not perfect prediction.
