A 'Templeton Trade' on China

Sir John Marks Templeton, who lived from 1912 to 2008, was a well-known investor, but he may not get the credit he deserves. Without question, Templeton belongs to that small club of greatest investors of all time. What set him apart was his willingness to buy out-of-favor assets that were shunned by the majority. He pioneered the use of mutual funds in the global investment arena, and in the 1960s he invested in Japan and other countries and came out a billionaire. 

Templeton may be most famous for a bold bet he made in 1939, when war in Europe led to a plunge into equity prices. Templeton purchased $100 of every stock that traded below $1 a share on both the New York Stock Exchange and American Stock Exchange. That bet led Templeton to invest $10,400 (about $166,400 in today's dollars) in 104 companies. One-third of those companies were bankrupt at the time of investment. In 1943, Templeton sold the basket of stocks for over $40,000, nearly quadrupling his money in four years. ...371 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.