The Greatest Investors: John Templeton

The Greatest Investors: John Templeton: "'Rejecting technical analysis as a method for investing, Templeton says, 'You must be a fundamentalist to be really successful in the market.'

'Invest at the point of maximum pessimism.'

'If you want to have a better performance than the crowd, you must do things differently from the crowd.'
'When asked about living and working in the Bahamas during his management of the Templeton Group, Templeton replied, 'I've found my results for investment clients were far better here than when I had my office in 30 Rockefeller Plaza. When you're in Manhattan, it's much more difficult to go opposite the crowd.'"

Brilliant Management Vs Bad Economics

"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." - Warren Buffet

Phil Fisher on Investing

15 Points to Look for in a Common Stock

1. Does the company have products or services with sufficient market potential to make possible a sizeable increase in sales for at least several years?
2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
3. How effective are the company's research and development efforts in relation to its size?
4. Does the company have an above-average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company will be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable future, will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders' benefit from this anticipated growth?
14. Does the management talk freely to investors about its affairs when things are going well but "clam up" when troubles or disappointments occur?
15. Does the company have a management of unquestionable integrity?
    

Five Don'ts for Investors

1. Don't buy into promotional companies.
2. Don't ignore a good stock just because it is traded "over-the-counter."
3. Don't buy a stock just because you like the "tone" of its annual report.
4. Don't assume that the high price at which a stock may be selling in relation to its earnings is necessarily an indication that further growth in those earnings has largely been already discounted in the price.
5. Don't quibble over eighths and quarters.

Warren Buffetts Rules for Investing Success

1. Ascertain the true quality of a company and its top managers.
2. Stockholders are not managers. They should leave the running of the firm to competent managers with integrity.
3. Don't invest in businesses you don't understand.
4. Give help and advice if they want it, but let the managers make their own decisions.
5. Never, ever break the law.
6. Owners are owners and managers are managers - but they should work as partners
7. Keep your distance from the market. You will understand the business better !