Taking the Templeton Basket to China

A couple of weeks ago, I discussed one of the greatest trades that was put on by the late, great Sir John Templeton back in 1939, when Europe's political climate was wreaking havoc (sound familiar) on the stock market.

Instead of trying to focus on one or two winning investments amidst all the uncertainty, Templeton instead created a basket investment. He bought $100 (about $1600 in today's dollars) of every single stock that traded below $1 on both the NYSE and ASE. Templeton ended up investing in 104 companies, 34 or so of which were bankrupt. Four years later, Templeton cashed out making nearly four times his money....338 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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