Buy value, not market trends or the economic outlook

Franklin Templeton Investments  published book “16 RULES FOR INVESTMENT SUCCESS” that describe how Sir John Templeton invested his and his clients money.

Rule 6: Buy value, not market trends or the economic outlook

Buy valueA wise investor knows that the stock market is really a market of  stocks. While individual stocks may be pulled along momentarily by a strong bull market, ultimately it is the individual stocks that determine the market, not vice versa. All too many investors focus on the market trend or economic outlook. But individual stocks can
rise in a bear market and fall in a bull market.

The stock market and the economy do not always march in lock step. Bear markets do not always coincide with recessions, and an overall decline in corporate earnings does not always cause a simultaneous decline in stock prices. So buy individual stocks, not the market trend or economic outlook.

Earlier on Tradingwisdoms

16 Rules For Investment Success – Sir John Templeton

Rule 1: Invest for maximum total real return – Sir John Templeton

Rule 2: Invest do not trade or speculate

Rule 3: Remain flexible and open minded about type of investment 

Rule 4: Buy Low

Rule 5: When buying stocks, search for bargains among quality stocks

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites

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