Sangfroid~ Key for enjoying health and prosperity in the markets.

February 22nd, 2010 by Rich

Whether we like it or not, we are always in one market or another, whether it is cash, credit, food, homes, paper or things. As we have learned of late, markets do not move in a straight line, nor do they guarantee returns.

The late great international mutual fund manager Sir John Templeton, who survived and prospered during many bear and bull markets, said the key to his success was to:

Buy at the point of maximum pessimism and sell at the point of maximum optimism.


How do we know? We have a built in detector called our heart.

If it seems strange for a successful international investor to be talking about heart, stay tuned.

As a young Merrill Lynch employee, who founded the Young Presidents Organization, chaired the Princeton Theological Seminary, advised kings and queens with the Hope Faith and Charity Trust, Oxford Templeton College where I matriculated, and the Templeton Prize for Progress in Religion, Sir John saved half of what he made.

He bought used autos, furniture and houses for cash.  A student of the Bible, he knew Proverbs 22:7: The borrower is slave to the lender.

Sir John put his money where his mouth was by putting $10,000 into the market when World War II broke out in Europe.

His counter-intuitive act of courage was the beginning of his billion dollar fortune.

http://www.sirjohntempleton.org/pdf/SirJohnBio_full.pdf 326 pages.

Many times the ostrich just wants to hide her head in the sand, particularly after a market corrects (crashes) 50% in less than a year.

A cat, having sat on a hot stove, may not sit on a cold stove either.

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This entry was posted on Monday, February 22nd, 2010 at 7:58 pm and is filed under Prosperity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Sangfroid~ Key for enjoying health and prosperity in the markets.”

  1. Vahram Says:
    February 26th, 2010 at 4:25 pm

    Rich can you enlighten me on what the Big4 and TopTen is? I see you mentioning it now and then in your posts. I’d be interested, even if you could email it to me.

    Regards

  2. Rich Says:
    February 28th, 2010 at 7:13 pm

    Aloha Vahram
    Big4 is a Weekly Asset Allocation Report of the net position of the four largest traders in each asset category for $2000 a year with a money back guarantee if ideas do not cover costs in a year.
    TopTen is a Seasonal Portfolio of Closely-Held Dividend Discount Values with the same money back guarantee for $1000 a year.
    Subscribers repeat and grow because of performance through various market cycles.
    Expired copies of back issues to protect current subscribers were sent to your private address.
    Regards*Rich

 

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