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.
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