We caught you on the morning commute yesterday in our article “Thursday Morning Reads: Going Rogue, Share Traders More Reckless Than Psychopaths, so now we’re hoping to catch you once again today. If you took the day off, are at work already, or are retired either way sit back, relax, and read! We will keep the great articles coming and have some great surprises in stock for next week so stay tuned and be prepared. In the meantime, enjoy the articles we have posted below and please let us know which one’s your favorite, we’re always love hearing what you guys have to say!
In 2011, I will continue to bring you more new investment ideas from beyond America’s borders. I want to share the advice from the founding father ofoverseas investing and legendary investor, Sir John Templeton. He summed up his approach by reminding us of Will Rogers’ famous advice.
“Don’t gamble,” he said. “Buy some good stock. Hold it till it goes up…and then sell it. It if doesn’t go up, don’t buy it!”
Templeton had a simple belief that success in the stock market is based on the principle of buying low and selling high. Granted, you can make money by reversing the order – selling high and then buying low. And there is money to be made in things like derivatives, options and futures. But, by and large, he believed these are techniques for traders and speculators, not for investors.
In 1954, Templeton had a big idea: look beyond America’s borders for investing riches. This wasn’t exactly common at the time. After graduating from Yale, he was amazed that Americans hardly ever invested abroad. For a long time, he believed, it was almost considered unpatriotic for an American to buy foreign securities.
Over the next 50 years, Templeton amassed a small fortune by investing in overseas markets – eventually becoming a billionaire. And his Templeton Mutual Funds (now the Franklin Templeton Funds) produced an annualized return of 13.8% (compared to just 11.1% on the S&P), causing Money magazine to dub him “arguably the greatest global stock picker of the century.”
So how’d he do it?
Templeton considered himself a “bargain hunter.” Always a contrarian, he looked for “companies around the world that offered low prices and an excellent long-term outlook.”
Sir John Templeton’s core investment advice is even more relevant today. Anyone who follows Stocks on Wall Street knows I’m an avid supporter of emerging markets and international equities.
Follow Stocks on Wall Street in 2011 for more exciting new investment ideas from beyond America’s borders.