Global Investing: The Templeton Way [Paperback]

Norman Berryessa (Author), Eric Kizner (Author)

Book Description

Publication Date: December 1, 1992

As the pioneer of global investing, John M. Templeton has confounded the skeptics with his consistent performance and profound insights into the world of investing. Global Investing reveals his principles for achieving superior results and provides readers with: John Templetons story in his own words; The principles and techniques of the worlds leading global investor; An enlightening book that will help you achieve above-average, long-term investment results.

Product Details

• Paperback: 228 pages
• Publisher: McGraw-Hill; 1 edition (December 1, 1992)
• Language: English
• ISBN-10: 1556238738
• ISBN-13: 978-1556238734
• Product Dimensions: 8.8 x 5.9 x 0.8 inches
• Shipping Weight: 12.8 ounces
• Average Customer Review: 3.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,092,544 in Books (See Top 100 in Books)

Customer Reviews

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4 of 5 people found the following review helpful:

3.0 out of 5 stars Wall of Money, May 22, 2007

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-oo0(GoldTrader)0oo- (Honolulu) - See all my reviews

This review is from: Global Investing: The Templeton Way (Hardcover)

Global Investing: The Templeton Way was written at the time when the "wall of funds," now flooding emerging markets was just a trickle. Global Investing explains how Templeton originated a way to help the capital-starved developing economies dip into the global pool of capital to help all of the world's populations prosper.

The book was a series of interviews with Sir John at his home in the islands. The interviewers go through extensive teaching just to get the reader to the place where we can understand the question. This gives a broad comprehensive understanding of what Templeton is trying to teach us in that moment of time when just about everyone invested at home.

The root of global investing opportunity lies in understanding the course of world events. It is the existence of market inefficiencies that can lead to abnormal returns. The U.S. had the most efficient markets, Emerging economies the least.

This book is about global investing as practiced by John Templeton, at a time that international investing was yielding to and even broader, more flexible holistic world view that includes the undeveloped countries.

"We are bargain hunters and we only buy if we calculate that something is undervalued."

"It makes sense that you will find better investment opportunities when you search everywhere in the world instead of just at home."

"Replacement book values can be purchased cheaper outside of developed countries.. Earnings fluctuate around these values. In the long run, the stock market indexes fluctuate around the long term upward trends of earnings per share."

Look at the share price relative to sustainable future earnings.

Risk is measured by the variance variability of return, not gain or loss on original capital.

" If you hold a large number of different funds, you may earn only the average return earned by the mutual fund industry. "

--o0o---

Warren Buffett

Another interesting thing, there is a comparison between John Templeton and Warren Buffett. Both investors are students of Benjamin Graham's value investing techniques. In selecting stocks investors need to focus on values. Part of the trick was determining value in so many different places. A low p/e is one yardstick of a bargain because in the long run, the stock market indexes fluctuate around the long term upward trend of earnings per share.

Both Sir John and Warren are long-term investors who want to own securities that produce the greatest consistent gain over the longest periods of time. In Sir John's capacity as a fiduciary, he has looked all over the world to find undervalued securities, in undervalued markets for his clients. Warren buffett on the other hand who invested primarily for his own account was satisfied until recently investing only in the US?

Now twenty years later we see Buffett's closed end fund, investing in emerging markets with "PetroChina," precious metals like "silver bullion," as well as trading in currency futures. Warren says investing should be looked at as though you "own a piece of the business." He goes on to say that when you purchase a security "it should not bother you if the market was closed for five years."

---o0o---

Templeton empathizes the "importance of price."

"Purchase only when you can pay less than it is worth today, and only if you believe that it will be worth more tomorrow."

"The time to sell is when you have found a much better bargain to replace it.

Risk is measured by the variance variability of return, not gain or loss on original capital.

If you are going to invest in stocks, buy a bunch of different issues and be sure they are not stocks that rise and fall in unison. Global investing can reduce portfolio shrinkage in asset values.