John Templeton
John Templeton📌 Market Psychology

John Templeton's Market Psychology Rules

Sir John Marks Templeton (November 29, 1912 – July 8, 2008) was an American-born British investor, fund manager, and philanthropist. He founded the Templeton Growth Fund in 1954, which became one of the most successful international investment funds in history. Templeton pioneered global diversification, investing in international markets when most American investors focused solely on domestic stocks. He famously bought...

3 principles·Market Psychology

3 Key Market Psychology Principles

#1

Avoid the Crowd

"It is impossible to produce superior performance unless you do something different from the majority. To buy when others are despondently selling requires the greatest fortitude."

Do something different from the crowd.

🌿 Intermediate★★★★★
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#2

Avoid the Crowd

"If you want to have a better performance than the crowd, you must do things differently from the crowd."

Outperformance requires thinking and acting differently than consensus.

🌿 Intermediate★★★★☆
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#3

Point of Maximum Pessimism

"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy."

Market cycles are driven by emotion, not fundamentals alone.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are John Templeton's key market psychology principles?

John Templeton has 3 key principles on market psychology. The most important one is "Avoid the Crowd" — It is impossible to produce superior performance unless you do something different from the majority.

How does John Templeton apply market psychology in practice?

John Templeton applies market psychology through several key principles including "Avoid the Crowd" and "Avoid the Crowd". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes John Templeton's approach to market psychology unique?

John Templeton's approach to market psychology 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.

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